Tactical Private Placements

Further to our last blog post, below is an introduction of the use of tactical private placements as a defensive measure against unsolicited take-over bids.

See Chinese version below [中文版参阅下文].

There have been a few transactions in Canada in recent years where target companies have issued equity to friendly third parties at least in part to
discourage hostile bids. Not only does the hostile bid become more expensive, but with the new requirement that 50% of shareholders must support the bid, that approval becomes harder to achieve.

Any private placement that impacts a hostile take-over bid may be challenged in court and/or before the securities regulators. Relevant considerations in the cases to date include the timing of the private placement relative to the bid, whether the target required the financing, the impact of the private placement on the hostile bid or on a second bidder or locked-up shareholder, and whether the private placement was approved by shareholders.

战术性私募

继我们上一篇博客, 以下将对战术性私募作为恶意收购防护措施进行介绍。

近年来在加拿大进行的几笔交易是这样的：目标公司向友善的第三方发行股票，以便部分阻拦恶意收购。如此做法使恶意收购更昂贵，而且由于新规则需要获得50%股东支持的规定，因此，能够得到这种批准就更难实现。

任何影响恶意收购的私募交易都可能在法庭和/或证监会前被质疑。到目前为止此类交易中考虑到的因素包括：与要约收购有关的私募时间、目标公司是否需要融资，私募对恶意收购的影响、或对第二收购出价人或被锁定股东的影响、包括私募交易是否会得到股东批准。