Friday, April 16, 2010
Norton Rose has a memo on the in's and out's of M&A in Hong Kong. Transactions involving Hong Kong companies are governed by the Codes on Takeovers and Mergers and Share Repurchases. The Hong Kong takeover code is similar in many respects to the UK Takeover Code. The Norton Rose memo notes:
Although the Code does not have the force of law, compliance with the Code is, in practice, mandatory because the Panel can impose sanctions on market participants considered to be acting in breach of the Code. These sanctions can include: reprimand (both private and public); and "cold-shouldering" (prohibitions on certain persons from acting for the offending entity). In addition, any breach of the Code by a listed company will constitute a breach of the Listing Rules by that company.
The Hong Kong Takeover Panel website is here.