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Mandatory takeover rules changed

21.03.2008

On 15 March 2008, a change to Estonian takeover rules will enter into force clarifying the financing of a bid. Until now, it was unclear whether the requirement that a bidder must have financing secured before announcing the bid applied to mandatory takeovers. New law will remove this ambiguity and thus those who acquire control over issuer must have financing in place in advance. The change is probably due to recent takeover of AS Kalev, an Estonian leading confectionary, where few larger shareholders concluded voting agreement and controlled over 50% of the company, but negotiated financing only after announcement of the bid.“

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