Insights

A Matter of Equity: ASX-Listed Companies Funding Conditional Acquisitions Through Their Shareholders

In Australia, a clear procedure does not exist for ASX-listed companies to obtain financing from their existing shareholder base for conditional acquisitions. Generally, a company will need to ensure sufficient funding is available for an acquisition that is conditional or uncertain when it is agreed and announced. Issues can arise when these entities seek to raise funds from their existing shareholders for the purpose of the conditional acquisition, including a lack of clarity regarding what to do with funds raised should the acquisition not proceed.

This Jones Day White Paper reviews the methods of shareholder funding of conditional acquisitions used recently by Australian listed companies, identifies the various issues that arise under each of those methods and examines whether the Canadian approach to shareholder funding of these acquisitions might work in Australia.

Jones Day publications should not be construed as legal advice on any specific facts or circumstances. The contents are intended for general information purposes only and may not be quoted or referred to in any other publication or proceeding without the prior written consent of the Firm, to be given or withheld at our discretion. To request reprint permission for any of our publications, please use our "Contact Us" form, which can be found on our website at www.jonesday.com. The mailing of this publication is not intended to create, and receipt of it does not constitute, an attorney-client relationship. The views set forth herein are the personal views of the authors and do not necessarily reflect those of the Firm.

We use cookies to deliver our online services. Details of the cookies and other tracking technologies we use and instructions on how to disable them are set out in our Cookies Policy. By using this website you consent to our use of cookies.