Hon Craig Foss
Minister of Commerce
3 December 2012 Media Statement
Lowball Share Offer Regulations In Force
Commerce Minister Craig Foss has welcomed new regulations to help rein in unsolicited share offers and protect
shareholders.
"Unsolicited or ‘low ball’ offers are a predatory tactic that damages the health and confidence of our capital markets,"
says Mr Foss.
Lowball offers are unsolicited approaches to shareholders offering to buy their shares or other securities. Offer
letters put pressure on people to sell their shares quickly, often with little information and using unconventional
business practices.
"The new regulations will require greater disclosure requirements from a person or company that makes an offer, and
introduce stronger rights and remedies for shareholders," says Mr Foss.
A person who does not comply with an order made by the Financial Markets Authority commits an offence and is liable on
summary conviction to a fine not exceeding $30,000.
"The new regulations will help rein in these unsolicited offers, protect shareholders and contribute to growing
confidence in our capital markets,” says Mr Foss.
The regulations include:
• Setting minimum information requirements including stating the market price or a fair estimate of the value of the
shares.
• Specifying a minimum offer period and a cancellation period.
The regulations can be found at: http://www.legislation.govt.nz/regulation/public/2012/0331/latest/DLM4817557.html
ENDS