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CS Professional · Corporate Restructuring, Valuation and Insolvency · Regulation of Combinations

Tata-like conglomerate Arjun Industries Ltd has no agreement with Bhavani Textiles Ltd, but makes a public announcement under the SEBI Takeover Regulations, 2011 to acquire its shares. Bhavani's board has not consented. Under the Explanation to Section 6(2), what is the position?

The public announcement made under the SEBI Takeover Regulations, 2011 is treated as an 'other document' under the Explanation to Section 6(2), so it can trigger the notice requirement even without the target's consent.

  1. ANo document exists, so no notice can ever be required
  2. BOnly a document signed by Bhavani Textiles counts as 'other document'
  3. CThe public announcement under the SEBI Takeover Regulations is treated as an 'other document'Correct
  4. DOnly a court order can serve as the other document

Explanation

The Explanation defines 'other document' to include, where a public announcement has been made under the SEBI Takeover Regulations, 2011 for acquisition of shares, voting rights or control, that public document. Documents executed by the acquirer without target consent also count. So consent of the target is not needed.

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