06-165 ASIC stops unsolicited share offer
Thursday 25 May 2006
ASIC has accepted an enforceable undertaking from Island Arch Pty Ltd (Island Arch) and one of its directors, Mr Michael David Barnett.
The enforceable undertaking was provided after an investigation concerning the affairs of Island Arch relating to a letter signed by Mr Barnett which was sent to a number of shareholders in a listed company, Hudson Investment Group Limited (HGL).
ASIC was concerned the letter constituted an unsolicited offer to shareholders in HGL to acquire their shares and did not comply with the requirements of the Corporations Act concerning unsolicited off-market offers to purchase shares.
In particular, the letter did not state the price for which the shares would be purchased nor the market value of the shares as at the date of the offer.
ASIC's inquiries found no evidence the letter led to any person selling their shares.
'ASIC nipped this offer in the bud and will continue to ensure that shareholders who receive unsolicited offers to acquire their shares are treated fairly and receive the disclosure required by the Corporations Act about unsolicited offers,' said ASIC Deputy Executive Director, Enforcement, Mr Mark Steward.
As part of the enforceable undertaking, Island Arch and Mr Barnett have agreed:
- not to send or otherwise provide a copy of the letter to any shareholder of HGL; and
- not to send or otherwise provide a document in a form similar to the letter to any shareholder of any listed company in circumstances which would contravene any provision of Division 5A of Part 7.9 of the Act, or any other provision of the Act or Corporations Regulations 2001.
End of release
Download a copy of the enforceable undertaking from the ASIC website
FIDO Website: Printed 09/10/2010
