The threshold that obliges shareholders to make a mandatory tender offer in Russia may change.
The Ministry of Justice suggests removing the legal requirement for tender offers in the case of 30% a stake purchase in a joint stock-company. The ministry’s officials consider there is no reason to establish a 30% stake threshold as it does not have any meaning in terms of control over the company.
The Central Bank of Russia (CBR) argued that such a stake allows blocking important decisions with a quorum of 75% votes and therefore the tender offer should be kept. The only exception is the existence of the shareholder owing stake of more than 50% in the company.
According to current Russian legislation, shareholders have to announce a tender offer when passing thresholds of 30, 50 and 75%. The initiative is yet to be approved by the Russian State Duma.
Contact:
Yuliya Shibukova
Relationship Manager
GSS Russia
Yuliya.Shibukova@unicredit.ru