Public acquisition activities between
domestic listed companies is booming, forcing market regulators to
issue new rules on public takeovers.
The latest
instruction, issued by the State Securities Commission early March,
requires listed firms to implement bids through a negotiation system at
stock exchanges, while unlisted firms will have to execute takeovers
through the Vietnam Securities Depository Centre.
Under the new rules, bid participants must also meet minimum tax and bidding fees,
Public takeovers are commonplace in the global market although locally
they have only started to appear since the bid between Hung Vuong and
An Giang Fisheries Import-Export Co last year.
An official from the State Securities Commission was quoted as saying
that the instruction on public acquisition bids is part of the
regulators’ attempt to give more power to domestic enterprises for
M&A activities.” The official added that the instruction would help
ensure shareholders’ benefit from transparent bid implementation./.