Singapore has amended its takeover and merger code to protect the competitive process of deals, improve the timing and certainty of schemes of arrangement and enhance disclosures to investors and shareholders, the Monetary Authority of Singapore said on Tuesday.
The amendments take effect on July 16.
The revised code caps total break fees paid by a target company to a bidder at 1% of the target’s value. A break fee is paid if specified events stop an offer from proceeding or cause it to fail.
A meeting to approve a scheme of arrangement must be held within six months of its announcement. After shareholder approval, both sides must take all necessary steps to make the scheme effective without delay.
A bidder that says it will not raise or extend an offer may not make a later offer that effectively raises or extends it for a set period.
The changes follow a May 2025 consultation and were issued on the advice of the Securities Industry Council.
Reuters
