Regulation of takeovers and mergers with an emphasis on the mandatory offer rule: a comparative and critical analysis of the law and the institutions that have been set up to enforce the law
Date
2019-04
Authors
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Journal ISSN
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Publisher
Stellenbosch : Stellenbosch University
Abstract
ENGLISH ABSTRACT :This dissertation assesses the regulation of takeovers and mergers and the institutions
created to enforce the law, from a comparative perspective. It uses South Africa as its
point of departure and takes the laws of Delaware in the United States, the United
Kingdom and Australia into account. The dissertation indicates that numerous
takeover provisions in South Africa are poorly formulated, making them difficult to
interpret and apply. Accordingly, the dissertation recommends amendment and
improvement of certain Takeover Provisions.
Special emphasis is placed on the mandatory offer requirement. The dissertation
critically and comparatively analyses this requirement and especially its impacts on
the market for corporate control, efficient usage of capital, corporate governance and
(in South Africa) Broad Based Black Economic Empowerment.
It appears from the literature explored that the mandatory offer requirement originated
from the Perlman case in the United States as an expression of the equal opportunity
rule. According to the equal opportunity rule, the controlling stake of a company is
enriched with a premium of control, which must be shared with other shareholders
when there is a change of the controlling shareholder. Shareholders must be given an
equal opportunity to share in this control premium. Hence, a mandatory offer must be
made to the remaining shareholders of the company by the new controlling
shareholder at a price at which control was bought. Perlman case was decided in the
United States of America during 1955.
It is contended in the dissertation, that the mandatory offer requirement in section 123
of the Companies Act 71 of 2008 (“the Act”), can ultimately be traced back to this case.
Researchers have criticised the mandatory offer requirement in a number of respects.
It has been pointed out that the rationale for the decision in the Perlman case was not
clear and applied in limited circumstances. Other scholars point out that the case was not a final decider on the sharing of the control premium due to later judicial
pronouncements that differed with that case. Despite these commentaries, it appears
that the case became a basis for imposing and enforcing this most debated rule in
takeover and merger law.
The dissertation concludes that the sharing of a premium of control, as envisaged by
the mandatory offer requirement, is not enforced in the state of Delaware. It further
concludes that in the UK, the mandatory offer rule forms the cornerstone of
enforcement of the equal opportunity rule, but that widely dispersed shareholding
ameliorates it negative consequences in that jurisdiction. The dissertation favours the
Australian approach. That jurisdiction does not require a mandatory offer similar to that
in section 123 of the Act, but, Australian Takeover Provisions, unlike their South
African equivalent, have been tailor-made for Australian market conditions. The
dissertation accordingly concludes that the mandatory offer requirement in section 123
of the Act in its current form is not appropriate for South Africa.
KAKARETSO KA SESOTHO SA LEBOA : Sengwalwa se sa nyakišišo se sekaseka melao le taolo ya gotšewa le gohlakantšhwa gadikhampani, gotee le metheo e hlomilwego gore melao e phethagatšwe, ka go bapetšwa. Sengwalwa nyakisišo se, se šomiša Afrika Borwa bjalo ka seikokotlelo sa sengwalo ebile se sekegela tsebe melao ya Mmušong waDelaware gola United States of America, United Kingdom le Australia. Sengwalwa se sa nyakišišo se laetša gore melao ye mmalwa yeo e begilwego golaolo gotšewa le gohlakantšha gadikhampani, e hlamilwe ka go fokola, gomme, se se dira gore go be boima goka e kwešiša le go e diriša kamo goswanetšego. Ka ka lebaka leo ge sengwalwa se, se fa ditšhišinyo tša go fetoša le go kagonafatša tše dingwe tša melawana le dinyakwa tša gotšewa le gohlakantšhwa gadikhampani. Šedi ye tseneletšeng e beilwe go dinyakwa tša kgapeletšo tša gore ge mongdišere wa khamphani a reka goba a hweditše dišere tša go lekana goba go feta dipersente tše masometharo tlhano, a gapeletšwe go reka dišere tšotlhe tše šetšeng tša bengšere ba khamphani, kamo sengwalong se. Sengwalwa se sa nyakišišo se sekaseka le go bapatša dinyakwa tše, tša kgapeletšo, kudukudu ditlamorago tša tšona mo go lekgotlataolo la dikhamphani, le mo tšhomišong ye maleba ya ditshelelete, taolong ye maleba ya dikhampani le gona Matlafatšong ya Bathobaso Ikonoming kamo Afrika Borwa. Go tšwa dingwalong tša dirutegi, tšeo di fetlekilwego, go laetša gore dinyakwa le melao ye ya kgapeletšo ya bengdišere e thomile go tšwa molatong le sepethong sa Perlman gola United States bjalo ka taetšo ya motheo wa gore, bengdišere baswanetše go swarwa ka golekalekana. Go ya ka motheo wo wa menyetla ya go lekalekana, mongdišere yo a nago le kabelo ye kgolo ya khamphani o filwe maatla le tokelo ya pušotaolo ya khamphani. Pušotaolo ye e humile, gomme, moalodi yo moswa o swanetše go ngwathelana lehumo le, le bengdišere ba bangwe nakong ya diphetogo ge molaodi yo moswa a thoma go laola khamphani yeo. Bengdišere ba swanetše go fiwa monyetla wa go lekalekana gore le bona ba be le kabelo lehumong la khamphani. Ke ka lebaka leo moladi yo moswa a gapeletšwa gore ge goba le diphetogo, molaodi o moswa a tšea taolo ya khampani, a fe bengdišere bao ba šetšego monyetla wa go rekiša dišere tša bona go yena ka tšhelete ye lekanang le ye a e ntšhitšeng go reka taolo ya khampani. Sephetho sa molato wa Perlman se tšerwe kua United States of America mo gare ga ngwaga wa 1955. Sengwalwa se sa nyakišišo se bontšha gore dinyakwa tša kgapeletšo ya bengdišere ka gare ga karolo ya 123 ya Molao wa Dikhampani 71 wa 2008, ge di lotwa mohlala gore dithomile kae, go ka šupwa molato le sepheto sa Perlman. Badiradinyakišišo dibukeng, ba sotše gore moreki wa taolo ya khampani a gapeletšwe go fa bengdišere monyetla wa gore dišere tša bona direkiwe ge a reka taolo ya khampani, go tšwa mahlakoreng a go fapafapana. Go bontšhitšwe gore lebakakgolo ke tšhušumetšo ya sephetho le molato wa Perlman. Le ge go le bjalo, go bontšhitšwe gore molato wo le sephetho se, se be se šomišiwa ka baka a maleba feela, mola le mola. Ba bangwe ba dirutegi ba laetša gore sephetho se, ga se sa mafelelo ka gobane diphetho tše tlileng ka morago, di fapane le sepheto se. Le ge go le bjalo, go nale tšhupo ya gore molato yo, e bile seikokotlelo sa go diragatša le go phethagatša motheo wa dinyakwa tša kgapeletšo ya balaodi ba baswa badišere, motheo yoo gobolelwang kudu ka wona mo mererong ya gotšewa le gohlakantšhwa ga dikhampani. Sengwalwa nyakišišo se ruma ka la gore molao wa dinyakwa tša kgapeletšo ya bengdišere, ga o phethagatšwe Mmušong wa Delaware, gona United States of America. Sengwalwa nyakišišo se, se ruma gape ka la gore kua United Kingdom, molao wo wa dinyakwa tša kgapeletšo go bengdišere ba baswa ke boikokotlelo bja phethagatšo ya menyetla ya go lekalekana gobengdišere ge taolo ya khaphani e fetoga. Eupša taolo le ya dišere gona kua United Kingdom e nabile ka bophara gare ga bengšere ka moo, e kaonafatša ditlamorago tše mpe tša motheo wa taolo ya dikhampani tša naga yeo. Sengwalwa se se gata ka mošito wo tee le mokgwa wo o šomišitšwego ke Australia. Naga ya Australia ga e ena dinyakwa tša kgapeletšo tša bengšere go swana le tšeo di lego karolong ya 123 Molao wa Dikhampani 71 wa 2008. Melao le taolo ya gotšewa le gohlakantšhwa ga dikhampani ya Australia, e fapana le ya Afrika Borwa. Melao e hlametšwe feela maemo le mebaraka ya Australia. Ke ka lebaka leo sengwalwa se sa nyakišišo, se ruma ka gore dinyakwa tša kgapeletšo tša karolo ya 123 ya Molao wa Dikhampani 71 wa 2008, ka sebopego sa tšona sa bjale, ga di maleba ka mo Afrika Borwa.
KAKARETSO KA SESOTHO SA LEBOA : Sengwalwa se sa nyakišišo se sekaseka melao le taolo ya gotšewa le gohlakantšhwa gadikhampani, gotee le metheo e hlomilwego gore melao e phethagatšwe, ka go bapetšwa. Sengwalwa nyakisišo se, se šomiša Afrika Borwa bjalo ka seikokotlelo sa sengwalo ebile se sekegela tsebe melao ya Mmušong waDelaware gola United States of America, United Kingdom le Australia. Sengwalwa se sa nyakišišo se laetša gore melao ye mmalwa yeo e begilwego golaolo gotšewa le gohlakantšha gadikhampani, e hlamilwe ka go fokola, gomme, se se dira gore go be boima goka e kwešiša le go e diriša kamo goswanetšego. Ka ka lebaka leo ge sengwalwa se, se fa ditšhišinyo tša go fetoša le go kagonafatša tše dingwe tša melawana le dinyakwa tša gotšewa le gohlakantšhwa gadikhampani. Šedi ye tseneletšeng e beilwe go dinyakwa tša kgapeletšo tša gore ge mongdišere wa khamphani a reka goba a hweditše dišere tša go lekana goba go feta dipersente tše masometharo tlhano, a gapeletšwe go reka dišere tšotlhe tše šetšeng tša bengšere ba khamphani, kamo sengwalong se. Sengwalwa se sa nyakišišo se sekaseka le go bapatša dinyakwa tše, tša kgapeletšo, kudukudu ditlamorago tša tšona mo go lekgotlataolo la dikhamphani, le mo tšhomišong ye maleba ya ditshelelete, taolong ye maleba ya dikhampani le gona Matlafatšong ya Bathobaso Ikonoming kamo Afrika Borwa. Go tšwa dingwalong tša dirutegi, tšeo di fetlekilwego, go laetša gore dinyakwa le melao ye ya kgapeletšo ya bengdišere e thomile go tšwa molatong le sepethong sa Perlman gola United States bjalo ka taetšo ya motheo wa gore, bengdišere baswanetše go swarwa ka golekalekana. Go ya ka motheo wo wa menyetla ya go lekalekana, mongdišere yo a nago le kabelo ye kgolo ya khamphani o filwe maatla le tokelo ya pušotaolo ya khamphani. Pušotaolo ye e humile, gomme, moalodi yo moswa o swanetše go ngwathelana lehumo le, le bengdišere ba bangwe nakong ya diphetogo ge molaodi yo moswa a thoma go laola khamphani yeo. Bengdišere ba swanetše go fiwa monyetla wa go lekalekana gore le bona ba be le kabelo lehumong la khamphani. Ke ka lebaka leo moladi yo moswa a gapeletšwa gore ge goba le diphetogo, molaodi o moswa a tšea taolo ya khampani, a fe bengdišere bao ba šetšego monyetla wa go rekiša dišere tša bona go yena ka tšhelete ye lekanang le ye a e ntšhitšeng go reka taolo ya khampani. Sephetho sa molato wa Perlman se tšerwe kua United States of America mo gare ga ngwaga wa 1955. Sengwalwa se sa nyakišišo se bontšha gore dinyakwa tša kgapeletšo ya bengdišere ka gare ga karolo ya 123 ya Molao wa Dikhampani 71 wa 2008, ge di lotwa mohlala gore dithomile kae, go ka šupwa molato le sepheto sa Perlman. Badiradinyakišišo dibukeng, ba sotše gore moreki wa taolo ya khampani a gapeletšwe go fa bengdišere monyetla wa gore dišere tša bona direkiwe ge a reka taolo ya khampani, go tšwa mahlakoreng a go fapafapana. Go bontšhitšwe gore lebakakgolo ke tšhušumetšo ya sephetho le molato wa Perlman. Le ge go le bjalo, go bontšhitšwe gore molato wo le sephetho se, se be se šomišiwa ka baka a maleba feela, mola le mola. Ba bangwe ba dirutegi ba laetša gore sephetho se, ga se sa mafelelo ka gobane diphetho tše tlileng ka morago, di fapane le sepheto se. Le ge go le bjalo, go nale tšhupo ya gore molato yo, e bile seikokotlelo sa go diragatša le go phethagatša motheo wa dinyakwa tša kgapeletšo ya balaodi ba baswa badišere, motheo yoo gobolelwang kudu ka wona mo mererong ya gotšewa le gohlakantšhwa ga dikhampani. Sengwalwa nyakišišo se ruma ka la gore molao wa dinyakwa tša kgapeletšo ya bengdišere, ga o phethagatšwe Mmušong wa Delaware, gona United States of America. Sengwalwa nyakišišo se, se ruma gape ka la gore kua United Kingdom, molao wo wa dinyakwa tša kgapeletšo go bengdišere ba baswa ke boikokotlelo bja phethagatšo ya menyetla ya go lekalekana gobengdišere ge taolo ya khaphani e fetoga. Eupša taolo le ya dišere gona kua United Kingdom e nabile ka bophara gare ga bengšere ka moo, e kaonafatša ditlamorago tše mpe tša motheo wa taolo ya dikhampani tša naga yeo. Sengwalwa se se gata ka mošito wo tee le mokgwa wo o šomišitšwego ke Australia. Naga ya Australia ga e ena dinyakwa tša kgapeletšo tša bengšere go swana le tšeo di lego karolong ya 123 Molao wa Dikhampani 71 wa 2008. Melao le taolo ya gotšewa le gohlakantšhwa ga dikhampani ya Australia, e fapana le ya Afrika Borwa. Melao e hlametšwe feela maemo le mebaraka ya Australia. Ke ka lebaka leo sengwalwa se sa nyakišišo, se ruma ka gore dinyakwa tša kgapeletšo tša karolo ya 123 ya Molao wa Dikhampani 71 wa 2008, ka sebopego sa tšona sa bjale, ga di maleba ka mo Afrika Borwa.
Description
Thesis (LLD)--Stellenbosch University, 2019.
Keywords
Consolidation and merger of corporations -- Regulations, Consolidation and merger of corporations -- Evaluation, Consolidation and merger of corporations -- Law and legislation -- Delaware, Consolidation and merger of corporations -- Law and legislation -- South Africa, Consolidation and merger of corporations -- Law and legislation -- Great Britain, UCTD