Squeeze-out rules pose execution risks

Author: Ashley Lee | Published: 24 Feb 2014
What comes first – more deals or harmonised takeover rules?

The increase in public takeovers and take-privates expected throughout Asia Pacific in 2014 has prompted deal execution concerns surrounding local squeeze-out rules.

But in a chicken-and-egg situation, it's unlikely that regulators will change regimes without seeing deals.

Although lawyers have been predicting the rise of public takeovers in the continent for years, deals might finally materialise in 2014 as private equity firms must deploy the Asia-specific funds they have raised.

The region's patchwork of regulations, however, poses significant execution risks.

An area highlighted to IFLR is the squeeze-out of minority shareholders in public takeovers. While some jurisdictions offer a variety of options, others lack provisions entirely. IFLR viewed an advance copy of a Norton Rose Fulbright overview of M&A law across the Asia-Pacific, which revealed the diversity of these regimes across the region.