What is an open offer under the SAST Regulations 2011?

The open offer is thus a fancy legal terminology to describe the takeover offer whereby to acquire another listed company (Target) an acquirer has to propose an offer to its existing shareholders to sell their shares at an offer price determined by the acquirer.

What is a voluntary open offer?

A voluntary offer or voluntary open offer is made by the shareholders via a public announcement when an acquirer along with PAC if any, exercise 25\% or more of voting rights or control in the target company but less than the maximum permissible non-public shareholding then the acquirer has to make a voluntary offer to …

What is open offer requirement?

In India, an open offer is generally activated when a company acquires another listed company by up to 15\% shares. In such cases, the existing stakeholders will be given an open offer to purchase an additional 20\% of the company shares.

What is the limit of acquisition above which open offer is required?

Any acquisition of further shares or voting rights beyond 5\% shall require the acquirer to make an open offer.

What is open offer under SAST Regulations?

The Open Offer is being made at a price of * 20 per Offer Share (the “Offer Price”), which is determined in accordance with Regulation 8(2) of the SEBI (SAST) Regulations. Assuming full acceptance under the Open Offer, the total consideration payable by the Acquirer under the Open Offer will be * 2,25,61,40,860.

What are the various regulations relating to minimum and maximum size of open offer?

Minimum offer size of 26\%. Minimum offer size of 10\%. Maximum can be for entire share capital of the target company. The maximum offer size is linked to maximum permissible non public shareholding permitted under Securities Contracts (Regulations) Rules 1957.

What is open offer in Sebi?

An open offer is an offer made by the acquirer to the shareholders of the target company inviting them to tender their shares in the target company at a particular price.

What happens in an open offer?

An open offer is a secondary market offering, similar to a rights issue. In an open offer, a shareholder is allowed to purchase stock at a price that is lower than the current market price. The purpose of such an offer is to raise cash for the company efficiently.

What is open offer under Sebi?

What is the cutoff limit of acquisition of share holding for compulsory announcement of open offer to public by acquirer?

25\%
The maximum shareholding that can be acquired is restricted by the maximum permissible non-public shareholding in case the shareholding held by acquirer or PAC is more than 25\%. On the other hand, for shareholding less than 25\% there is no upper limit and entire share capital can be acquired by them.

What is the stipulated size of an open offer on reaching the threshold limits for acquisition of shares voting rights?

29. What is the stipulated size of an open offer? An open offer, other than a voluntary open offer under Regulation 6, must be made for a minimum of 26\% of the target company’s share capital. The size of voluntary open offer under Regulation 6 must be for at least 10\% of the target company’s share capital.

What is meant by open offer?