Sebi mulls new, easier framework for companies to delist post open offer

Aims to remove sequentially contradictory transactions in the takeover process

Market regulator Sebi on Friday proposed a new framework to make it easier for companies to delist following an open offer by allowing an incoming acquirer to launch both simultaneously.

At present, in case of a direct or indirect change in ownership at a listed company, the new acquirer has to make a 26 per cent mandatory open offer. If the open offer is entirely successful, there is a possibility that the shareholding of the new acquirer reaches 90 per cent. In order to comply with the 25 per cent minimum public shareholding norms, the acquirer again has to divest