Earlier this year, ASIC released a consultation paper calling
for submissions on a number of changes proposed in order to remove
certain existing regulatory impediments to capital raising. ASIC
have now received submissions and expects to release policy
documentation relating to the proposals in May 2009.
ASIC has acknowledged that current market conditions have not
favoured debt financing, and the rationale behind ASIC's
proposals is to increase access for retail investors to equity
capital raising opportunities which would usually be limited to
ASIC is proposing a number of measures including:
Broadening the takeover exception for rights issues by granting
class order relief to listed entities to allow members and
underwriters of the rights issue to take up any shortfall, even if
this would result in such members or underwriters exceeding the
takeover threshold. This relief is proposed to be conditional on,
amongst other things, the provision of adequate information
regarding how the shortfall will be dealt with and any potential
effect the take-up of the shortfall may have on the control of the
Granting class order relief to enable an underwriter of a
dividend reinvestment plan to take up any shortfall, even where in
doing so the underwriter may exceed the takeover threshold. ASIC
also proposes to extend such relief to offers of interests in
listed managed investment schemes.
Granting case by case relief to relax the conditions that must
be met in order to undertake a section 708AA rights issue or a
secondary sale of securities in reliance on the issue of a section
708A notice, without the issue of a prospectus, by increasing the
maximum suspension period over the previous 12 months to greater
than 5 trading days as is currently the case.
Relaxing some of the conditions of Class Order 05/26 by
allowing the responsible entity of a listed managed investment
scheme to make placements of interests in the scheme at a discount
of more than 10% to the current market price without member
approval. ASIC has indicated that such a proposal would require the
responsible entity to balance the dilutionary effect of such a
placement on existing members against the likely positive effect of
an increase in capital.
ASIC believes that the above proposals will facilitate equity
capital raisings by allowing listed entities to raise capital in a
timely manner to ensure they have sufficient resources to operate
effectively in a way that will not diminish market integrity or
An actuarial review of the Invensys Australia Superannuation Fund showed it to be in surplus to the tune of $189.2 million. In mid 2003, the Invensys Group proposed to the trustee that the surplus be repatriated to the principal employer in the group.
CIVs will have flow-through status for tax purposes and similar criteria as the MITs, to encourage foreign investment.
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