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Which rule , when triggered will

make the takeover offer a

mandatory one?

Ans: Rule 14

The offeror company's shares can

be offered as a cash ALTERNATIVE

mode of payment for a takeover

offer. However, these shares must

be underwritten.

Rule 14 of the Takeover Code will be

triggered if the person buys morethan 30% of the target companys

shares .

If you are acquiring shares in a

target company, you are said tohave DEEMED interest in the

shareholdings of you concert

parties.

A rights issue is offered to EXISTING

shareholders while share placement

is offered to non-existing

shareholders.

A rights issue is offered to existing

shareholders while share

PLACEMENT is offered to non-

existing shareholders.

Depending on the situation, a

takeover offer can be voluntary or

MANDATORY.

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The offeror company's shares can

be offered as a cash alternative

mode of payment for a takeover

offer. However, these shares must

be UNDERWRITTEN.

Rule 14 of the Takeover Code will be

triggered if the person buys morethan 30% of the TARGET companys

shares .

A RIGHTS issue is offered to

existing shareholders while share

placement is offered to non-

existing shareholders.

Depending on the situation, a

takeover offer can be VOLUNTARY

or mandatory.

Which rule governs the conduct of 

the offeree and offeror board of 

directors?

Ans: Singapore Code on

MERGERS and Acquisition

If you are acquiring shares in a

target company, your close relativeis deemed to be acting in CONCERT

with you.

For a share placement, what is the

number of shares that can be

issued?

Ans: 20% of the companys issued

share capital

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When market conditions are

favorable but not expected to last,

the company should choose a sharePLACEMENT .

A rights issue takes a LONGER

time to complete than a share

placement.

A share issue MANDATE is needed

for the board of directors to do ashare placement at short notice.

A mandatory takeover offer must be

made in cash or cash ALTERNATIVE

Share placement exercises are a

faster and less expensive way of 

raising funds than a RIGHTS issue.

The share issue mandate caps the

number of shares the board of 

directors can place at

20% of the companys issued share

capital .

If there was a rights issue of 1:4,

with the original share capital of 

1000 shares, what would be the

total number of shares at the end of 

the issue, assuming all the sharesare subscribed?

Ans: 1250

Listing companies may choose not

to have their shares underwritten,

depending on marketCONDITIONS.

When market conditions are

favorable but not expected to LAST,the company should choose a share

placement .

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When market conditions are

FAVORABLE but not expected to

last, the company should choose ashare placement.

A share placement normally takes

a SHORTER time to complete than

a rights issue would take.

A share issue mandate is needed

for the board of directors to do a

SHARE placement at short notice.

A cash alternative form of 

consideration for a takeover offer

include the OFFEROR companys

shares which are underwritten.

Share placement exercises are a

faster and less expensive way of 

raising FUNDS than a rights issue.

The share issue mandate caps the

number of shares the board of 

directors can place at

20% of the companys ISSUED share

capital .

Listing companies may choose not

to have their shares

UNDERWRITTEN, depending onmarket conditions.

If a company has huge fund

requirements, a share PLACEMENT

would not be a viable option.

A share issue mandate is needed

for the board of directors to do a

share PLACEMENT at short notice.