Financing the Bid

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See Chinese version below [中文版参阅下文].

In Canada, unlike in the United States, it is not permissible to make a take-over bid conditional on arranging financing. Before a bidder makes a cash take-over bid, it must have made “adequate arrangements” for its financing. Typically, the bidder will have signed a binding commitment letter with a bank or other source of funds prior to launching its take-over bid. The bidder will seek to have the conditions to the availability of the financing set out in the bank commitment letter as similar as possible to the conditions in the take-over bid circular that is sent to the target company’s shareholders. The law requires that the bidder must be confident that if the conditions to the bid are satisfied, the financing will be available. This represents an important potential obstacle to a hostile bid in Canada considering the 105-day minimum bid period.

要约收购融资

和美国不同,加拿大不允许以筹措资金为条件的要约收购。收购方在进行现金要约收购前,必须已经对其资金做好“充足的准备”。通常,在开始正式要约收购前,收购方已经同银行或其它资金来源方签署了具有约束力的承诺书。在银行的保证信中,收购方会要求所阐明的取得资金的条件尽量与寄送给目标公司股东的要约收购通告中所陈述的条件相同。法律要求收购方在满足收购条件的情况下,则可以取得资金。考虑到至少105天的要约期,这是加拿大恶意收购的一个重要的潜在障碍。

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