Corporate takeovers of publicly traded companies should be easier to execute under revised guidance contained in a staff notice published Tuesday by the Toronto Stock Exchange (TSX).
The TSX issued a consultation paper in June on possible changes to its guidance regarding the need for shareholder approval when a company issues securities in connection with a potentially dilutive acquisition. The exchange sought to revise its guidance to enable companies to increase an existing takeover bid without seeking shareholder approval for issuing additional shares.
Following a public consultation, the TSX is adopting revised guidance that will generally enable companies to issue up to an additional 25% of the number of securities approved by shareholders, without seeking further approval, as part of a proposed takeover bid.
The revised guidance also sets out the disclosure requirements for companies in connection with these sorts of transactions, among other things.