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Section 617 of The Companies Act No. 17 of 2015: Effect of exercising the rights conferred by section 615

    

(1) Subject to section 618, this section applies to shares in respect of which a shareholder has exercised the rights conferred by section 615.
(2) The offeror is not only entitled but also bound to acquire shares to which this section applies on the terms of the offer or on such other terms as may be agreed to by the shareholder and the offeror.
(3) If the terms of an offer are such as to give the shareholder a choice of consideration—
(a) the shareholder may indicate that choice when requiring the offeror to acquire the shares; and
(b) the offeror—
(i) shall include in the notice given to the shareholder under section 616, particulars of the choice and of the rights conferred by this subsection; and
(ii) may include in the notice an indication stating which consideration specified in the offer will apply if the shareholder does not indicate a choice.
(4) In subsection (2), the reference to the terms of the offer is to be read accordingly.
(5) Subsection (3) applies whether or not any time-limit or other conditions applicable to the choice under the terms of the offer can still be complied with.
(6) If the consideration offered to, or chosen, by the shareholder—(a) is not cash and the offeror is no longer able to provide it; or
(b) was to have been provided by a third party who is no longer bound or able to provide it, the consideration is taken to consist of an amount of cash that is payable by the offeror and that, at the date when the shareholder requires the offeror to acquire the shares is equivalent to the consideration that was offered or chosen.

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

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