Document ID: chunk:federal_register_of_legislation:F2024C00455:body:0:p4
Version: federal_register_of_legislation:F2024C00455
Segment Type: other
Provision Reference: 
Character Range: 7633–10349

net of expenses.
Small parcels
(4) If the consideration for the bid includes an offer of quoted securities, the securities do not need to be offered to holders of the target's securities who would otherwise be offered a small parcel of securities, if under the terms of the bid:
(a) where a nominee is appointed under subsection (3)—the bidder and the nominee must follow the procedure in subsection (3) as if a reference to "foreign holders" were a reference to holders of the target's securities who would otherwise be offered a small parcel of securities; or
(b) where a nominee is not appointed under subsection (3)—the bidder must pay to each holder of a small parcel of securities who accepts the bid an amount of cash which is equal to the market value of those securities.
(5) For the purposes of subsection (4):
market value of securities means the highest closing price for the securities published by any prescribed financial market on which the securities are quoted during the period beginning on the first day of the bid period, and ending on the earlier of:
(a) 5 trading days before the first day on which the bidder must pay or provide the consideration to a holder of bid class securities under terms of the offers; and
(b) the end of the bid period.
minimum parcel, in relation to quoted securities, means:
(a) if a "marketable parcel" or "minimum parcel" is defined in the respective rules governing the operation of more than one prescribed financial market on which the securities are quoted—a marketable parcel or minimum parcel as defined in whichever of the rules the bidder specifies in the bidder's statement;
(b) if a "marketable parcel" or "minimum parcel" is defined in the rules governing the operation of only one prescribed financial market on which the securities are quoted—a marketable parcel or minimum parcel as defined in those rules;
(c) otherwise—a parcel of the securities valued at not less than $500 based on the closing price of the securities on the relevant prescribed financial market.
small parcel, in relation to securities, means a parcel of securities which is not a minimum parcel calculated using the market value of those securities.";
(d) omit paragraphs 620(2)(b) and (c), substitute:

"(b) if the bidder is given the necessary transfer documents after the acceptance and before the end of the bid period and the offer is subject to a defeating condition at the time that the bidder is given the necessary transfer documents—by the end of whichever of the following periods ends earlier:
                  (i) 1 month after the takeover contract becomes unconditional; or
                  (ii) 21 days after the end of the offer period; or
              (ba)