Victor Chen and Carolyn Sng discuss Hong Kong's takeover regulatory requirements with International Financial Law Review
Corporate partner Victor Chen (HK) was quoted in an article recapping a panel at IFLR's Asia M&A Forum, where he addressed impediments that Asian private equity firms face with respect to Hong Kong's takeover regulatory requirements. Mr. Chen stated, "10% is a high threshold, and deals can be held hostage by opportunistic investors buying in after the offer and holding out for a higher price. Although the 10% rule was intended to protect minority shareholders, it can in effect deprive long term minority shareholders of a good deal if there are short term investors "gaming" the system."
The article also quoted corporate partner Carolyn Sng (HK) on the Hong Kong stock exchange's efforts to increase foreign listings and implications issuers currently face. She said, "Increasingly, we are finding that issuers when considering listing options are also taking into account the takeover rules and any fetters on their ability to do transactions, not just how much listing premium they can get from a market."