Acts and Regulations

S-5.5 - Securities Act

Section 116
Disposition versions

Full text
Restrictions on acquisitions during take-over bids
Repealed: 2007, c.38, s.94
2007, c.38, s.94
116Repealed: 2007, c.38, s.95
2007, c.38, s.95
Restrictions on acquisitions during take-over bids
116(1)An offeror shall not offer to acquire or make, or enter into any agreement, commitment or understanding to acquire beneficial ownership of any securities of the class that are subject to a take-over bid, otherwise than pursuant to the bid, on and from the day of the announcement of the offeror’s intention to make the bid until its expiry.
116(2)Notwithstanding subsection (1), an offeror making a take-over bid may purchase, through the facilities of an exchange recognized by the Commission for the purposes of paragraph 112(1)(a), securities of the class that are subject to the bid and securities convertible into securities of that class beginning on the third business day following the date of the bid until the expiry of the bid, if
(a) the intention to make such purchases is stated in the take-over bid circular,
(b) the aggregate number of securities acquired under this subsection does not constitute in excess of 5% of the outstanding securities of that class at the date of the bid, and
(c) on each day on which securities have been purchased under this subsection, the offeror issues and files a news release without delay after the close of business of the exchange disclosing the information prescribed by regulation.