Singapore M&A Code Amended to Clarify Provisions and Establish an Auction System

[Extract] As a regional financial centre, the impact of Singapore’s M & A regulations extends beyond its borders. In 2015, the city state was home to 591 reported M & A transactions, totalling US$101.2 billion, and the revenue authority is providing an M & A allowance to further encourage transactions. In the wake of Singapore’s largest takeover and first bidding stalemate, Fraser and Neave in 2012, and after consultation with the stakeholders, the Singapore Securities Industry Council (SIC) adopted several amendments to the Code on Take-overs and Mergers (the Code) to address issues related to the bidding process. This briefing highlights key changes in the amended Code, including aligning offer timetables in competing offers, codifying an auction procedure and clarifying the role of the offeree board.