A take-over happens when a company or person acquires the voting shares of a target company for the purpose of controlling its business and operation. In Malaysia, a take-over could take place in the following situations:
Generally, there are two types of take-over offer:
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Mandatory offer which is carried out to fulfil the regulatory obligation when the acquirer obtains control of the target company. The mandatory offer is triggered by the following circumstances: |
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- An acquirer acquires more than 33% of voting shares of a target company; or
- An acquirer shareholding in the target company is more than 33% but less than 50% and has acquired more than 2% shares in any six months.
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In this situation, the acquirer is required by law to make an offer to the rest of the shareholders to acquire the remaining voting shares, at the highest price paid by the acquirer for the shares. |
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| (2) |
Voluntary offer, is an offer carried out voluntarily by an acquirer to the shareholders of a target company to acquire their shares. But, there is no obligation on the acquirer to carry out the offer. |
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