The first proposal is to regulate deal protection measures, which could deter higher offers from competing offerors. For instance, break fees that an offeree agrees to pay an initial offeror if this offeror's offer does not succeed would count as a loss of value to any subsequent offeror, should the subsequent offeror succeed.
The Securities Industry Council (SIC) has proposed enhancing disclosures to investors and shareholders in the take-overs and mergers process, also known as M&A, in Singapore.
This enhancement is among four proposed amendments in a consultation paper released by SIC on May 5 to improve regulation of M&A transactions in Singapore. It takes into account market developments since the Singapore Code on Take-Overs and Mergers was last revised in 2019.
