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Section 585 of The Companies Act No. 17 of 2015: Shares already held by the offeror, etc

    

(1) Subject to subsection (2), the reference in section 584 to shares already held by the offeror includes a reference to shares that the offeror has contracted to acquire, whether unconditionally or subject to conditions being satisfied.
(2) The reference in section 584 to shares already held by the offeror does notinclude a reference to shares that are the subject of a contract—
(a) intended to ensure that the holder of the shares will accept the offer when it is made; and (b) entered into—
(i) by deed and for no consideration;
(ii) for consideration of negligible value; or
(iii) for consideration consisting of a promise by the offeror to make the offer.
(3) The condition in section 584(2) is satisfied if—
(a) the offer does not extend to shares that associates of the offeror hold or have contracted to acquire, whether unconditionally or subject to conditions being satisfied; and
(b) the condition would be satisfied if the offer did extend to those shares.

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Disclaimer: This document is not to be taken as legal advise.

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