Practical Law Corporate has published a report on some of the key highlights and trends in UK public M&A activity over the course of the first half of 2016. The report is based on a review of 20 firm offers announced in the first half of 2016 for Main Market and AIM companies that were subject to the Takeover Code, as covered in What's Market, and possible offers for Main Market or AIM companies (subject to the Code) where a potential bidder was subject to a put up or shut up deadline in the first half of 2016.
As well as providing an overview of public M&A activity in the first half of 2016, the report covers areas including:
- Sector trends.
- Regulatory intervention on bids, including remedies proposed to obtain regulatory clearances in certain bids.
- Structure of the deals (scheme of arrangement or offer), switches in structure, and whether the offers were recommended or hostile.
- Competing and potential competing bids.
- Private equity backed bids.
- Consideration offered, including offers with a mix and match facility or a loan note alternative, and bid financing arrangements.
- The operation of the put up or shut up regime.
- The formal sale process and its limited success to date in achieving a firm offer for target companies.
- Co-operation agreements and other arrangements that are permitted under Rule 21.2 of the Code.
This article was written by Sarah Hassan, Editor of Practical Law Corporate. For more information please contact Sarah Hassan.