The Securities Commission Malaysia today introduces flexibilities in complying with the requirements under Capital Markets and Services Act 2007 (CMSA) and Rules on Take-overs, Mergers and Compulsory Acquisitions (Rules) during the Movement Control Order (MCO) period.
In view of the challenges of printing offer documents and delivering the hard copy to shareholders during the MCO period, the SC had earlier announced that it will encourage the industry to offer more online services to the market, which include measures to facilitate take- over offers digitally.
With the new flexibilities, the SC will allow a hybrid method of serving takeover notices and documentation via electronic publication on dedicated pages at either the Bursa or the SC websites; and concurrently sending to all offeree shareholders a physical summary notification to inform them of the offer and the availability of the relevant notices and documents on the SC or Bursa website. Shareholders can now opt to accept an offer either electronically or by the conventional method of responding by post.
The SC has also extended the time period for settlement of cash consideration from 10 days to 12 days to facilitate the settlement of consideration via e-payment or issuance of cheques by shareholders who have accepted a take-over offer.
During the MCO period, offerors may instead of submitting a statutory declaration under section 222(1)(B) CMSA, send in a declaration to the SC confirming that all conditions have been fulfilled.
The above flexibilities will be applicable during the MCO period only and the SC would like to remind all relevant parties governed under the CMSA and the Rules to carefully consider the above flexibilities and to ensure that all other requirements are fully complied with.
The details of the flexibilities in complying with the CMSA and the Rules can be downloaded from www.sc.com.my/regulation/technical-notes-practice-notes-and-circulars and queries can be directed to Takeover&MergersDepartment@seccom.com.my.
