What is indirect acquisition as per takeover code and in what situations it is considered deemed Direct acquisition???
Any acquisition of shares / voting rights or control of a target company consequent to acquisition of shares or voting rights or control of another company is ‘indirect acquisition’ for the purposes of the Takeover Code. An ‘indirect acquisition’ shall be deemed to be a ‘direct acquisition’ for the purposes of the Takeover Code if the proportionate net asset value or sales turnover or market capitalisation of the indirectly acquired target company, represented as a percentage respectively of the consolidated net asset value or sales turnover or enterprise value of the directly acquired entity is in excess of 80%, on the basis of the most recent audited annual financial statements. All other ‘indirect acquisitions’ that do not fulfil the above mentioned criterion are treated as indirect acquisitions for the purposes of the Takeover Code.
by Shubhamm Sir
at 30-May-2023 05:09 PM