Takeovers Code (Trade Me Group Limited) Exemption Notice 2011

  • expired
  • Takeovers Code (Trade Me Group Limited) Exemption Notice 2011: expired, on 1 June 2012, by clause 3.

Reprint
as at 1 June 2012

Coat of Arms of New Zealand

Takeovers Code (Trade Me Group Limited) Exemption Notice 2011

(SR 2011/422)

  • Takeovers Code (Trade Me Group Limited) Exemption Notice 2011: expired, on 1 June 2012, by clause 3.


Note

Changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in this reprint.

A general outline of these changes is set out in the notes at the end of this reprint, together with other explanatory material about this reprint.

This notice is administered by the Takeovers Panel.


Pursuant to section 45 of the Takeovers Act 1993, the Takeovers Panel gives the following notice (to which is appended a statement of reasons of the Takeovers Panel).

Notice

1 Title
  • This notice is the Takeovers Code (Trade Me Group Limited) Exemption Notice 2011.

2 Application
  • This notice applies to acts or omissions occurring on or after 30 November 2011.

3 Expiry
  • This notice expires on the close of 31 May 2012.

4 Interpretation
  • (1) In this notice, unless the context otherwise requires,—

    Act means the Takeovers Act 1993

    agreement means the reorganisation agreement dated 9 November 2011 between Fairfax Digital and TMG (among others) relating to an acquisition of shares in Trade Me Limited and the Fairfax Digital allotment

    Code means the Takeovers Code under the Act

    control percentage means the percentage of voting rights in TMG that a person holds or controls

    Fairfax Digital means Fairfax Digital Holdings NZ Limited

    Fairfax Digital allotment means the allotment to Fairfax Digital of voting securities in accordance with the agreement

    Fairfax party means any of the following companies:

    • (a) Fairfax Media Limited, a company incorporated in Australia:

    • (b) Fairfax Media Publications Pty Limited, a company incorporated in Australia:

    • (c) John Fairfax Limited, a company incorporated in Australia:

    • (d) Fairfax Corporation Pty. Limited, a company incorporated in Australia:

    • (e) Fairfax New Zealand Holdings Limited

    offer means the offer of voting securities to the public by TMG

    prospectus means the combined prospectus and investment statement relating to the offer that was registered on 9 November 2011

    TMG means Trade Me Group Limited

    voting security means a voting security in TMG.

    (2) In this notice, a reference to a person increasing voting control is a reference to the person becoming the holder or controller of an increased percentage of the voting rights in TMG.

    (3) In this notice, a reference to an offer of securities to the public has the same meaning as in section 3 of the Securities Act 1978.

    (4) Any term or expression that is defined in the Act or the Code and used, but not defined, in this notice has the same meaning as in the Act or the Code.

5 Exemption from rule 6(1) of Code
  • Fairfax Digital and each Fairfax party are exempted from rule 6(1) of the Code in respect of any increase in their voting control as a result of the Fairfax Digital allotment.

6 Conditions of exemption in clause 5
  • The exemption in clause 5 is subject to the following conditions:

    • (a) the Fairfax Digital allotment is made—

      • (i) within 5 working days after allotments are made to the public under the offer; and

      • (ii) in accordance with the agreement:

    • (c) the prospectus prominently states—

      • (i) the maximum number of voting securities that could be allotted to Fairfax Digital under the agreement; and

      • (ii) the potential maximum control percentage of Fairfax Digital and of each Fairfax party on the completion of the allotments of voting securities to the public under the offer; and

      • (iii) the potential maximum control percentage of Fairfax Digital and of each Fairfax party as a result of the Fairfax Digital allotment; and

      • (iv) the potential maximum aggregate of the control percentages of Fairfax Digital, each Fairfax party, and their associates on the completion of the allotments of voting securities to the public under the offer; and

      • (v) the potential maximum aggregate of the control percentages of Fairfax Digital, each Fairfax party, and their associates as a result of the Fairfax Digital allotment:

    • (d) TMG is not a code company immediately before the allotments of voting securities to the public under the offer.

Dated at Auckland this 24th day of November 2011.

The Common Seal of the Takeovers Panel was affixed in the presence of:

[Seal]

D O Jones,
Chairperson.


Statement of reasons

This notice applies to acts or omissions occurring on or after 30 November 2011 and expires on 31 May 2012.

Trade Me Group Limited (TMG), a wholly owned subsidiary of Fairfax Media Limited (Fairfax), is making an initial public offer (IPO) of 34% of its shares. TMG intends to use the proceeds of the IPO as part of the consideration for the purchase of all of the shares in another of Fairfax’s wholly owned subsidiaries, Trade Me Limited (Trade Me). TMG will also issue 66% of its shares (the allotment) to Fairfax Digital Holdings NZ Limited (Fairfax Digital), a wholly owned subsidiary of Fairfax, in accordance with an agreement between TMG and Fairfax Digital (among others) (the agreement) entered into before the IPO. This will result in TMG being owned 34% by public shareholders and 66% by Fairfax Digital, and Trade Me being a wholly owned subsidiary of TMG.

The Takeovers Panel (the Panel) has granted an exemption for Fairfax Digital and for certain other Fairfax group companies (the Fairfax parties) in respect of rule 6(1) of the Takeovers Code (the Code). The Fairfax parties are—

  • Fairfax Media Limited:

  • Fairfax Media Publications Pty Limited:

  • John Fairfax Limited:

  • Fairfax Corporation Pty. Limited:

  • Fairfax New Zealand Holdings Limited.

The exemption relates to Fairfax Digital and the Fairfax parties becoming the holders or controllers of an increased percentage of the voting rights in TMG that would result from the allotment in accordance with the agreement and the IPO.

The exemption is subject to conditions that ensure that anyone who decides to invest in TMG will be able to take into account the maximum control percentage in TMG of Fairfax Digital and the Fairfax parties as a result of the allotment.

The Panel considers that it is appropriate and consistent with the objectives of the Code to grant the exemption because—

  • any person choosing to subscribe for shares in TMG for the first time can be expected to take into account an allotment that is notified to them in the combined prospectus and investment statement registered in relation to the IPO; and

  • if an offeree subscribes for TMG shares offered under the IPO on the basis of the information disclosed in the combined prospectus and investment statement that shows the potential maximum control percentage of the exempted persons, then the offeree can be taken to approve of the potential maximum control percentage to be held or controlled by the exempted persons; and

  • the exemption facilitates an IPO by a company that will only become a code company as a consequence of the IPO. The conditions attached to the exemption ensure that the exemption applies only to an offer that is effectively a preliminary step to TMG becoming a code company.


Issued under the authority of the Acts and Regulations Publication Act 1989.

Date of notification in Gazette: 1 December 2011.


Contents

  • 1General

  • 2Status of reprints

  • 3How reprints are prepared

  • 4Changes made under section 17C of the Acts and Regulations Publication Act 1989

  • 5List of amendments incorporated in this reprint (most recent first)


Notes
1 General
  • This is a reprint of the Takeovers Code (Trade Me Group Limited) Exemption Notice 2011. The reprint incorporates all the amendments to the notice as at 1 June 2012, as specified in the list of amendments at the end of these notes.

    Relevant provisions of any amending enactments that contain transitional, savings, or application provisions that cannot be compiled in the reprint are also included, after the principal enactment, in chronological order. For more information, see http://www.pco.parliament.govt.nz/reprints/ .

2 Status of reprints
  • Under section 16D of the Acts and Regulations Publication Act 1989, reprints are presumed to correctly state, as at the date of the reprint, the law enacted by the principal enactment and by the amendments to that enactment. This presumption applies even though editorial changes authorised by section 17C of the Acts and Regulations Publication Act 1989 have been made in the reprint.

    This presumption may be rebutted by producing the official volumes of statutes or statutory regulations in which the principal enactment and its amendments are contained.

3 How reprints are prepared
  • A number of editorial conventions are followed in the preparation of reprints. For example, the enacting words are not included in Acts, and provisions that are repealed or revoked are omitted. For a detailed list of the editorial conventions, see http://www.pco.parliament.govt.nz/editorial-conventions/ or Part 8 of the Tables of New Zealand Acts and Ordinances and Statutory Regulations and Deemed Regulations in Force.

4 Changes made under section 17C of the Acts and Regulations Publication Act 1989
  • Section 17C of the Acts and Regulations Publication Act 1989 authorises the making of editorial changes in a reprint as set out in sections 17D and 17E of that Act so that, to the extent permitted, the format and style of the reprinted enactment is consistent with current legislative drafting practice. Changes that would alter the effect of the legislation are not permitted.

    A new format of legislation was introduced on 1 January 2000. Changes to legislative drafting style have also been made since 1997, and are ongoing. To the extent permitted by section 17C of the Acts and Regulations Publication Act 1989, all legislation reprinted after 1 January 2000 is in the new format for legislation and reflects current drafting practice at the time of the reprint.

    In outline, the editorial changes made in reprints under the authority of section 17C of the Acts and Regulations Publication Act 1989 are set out below, and they have been applied, where relevant, in the preparation of this reprint:

    • omission of unnecessary referential words (such as of this section and of this Act)

    • typeface and type size (Times Roman, generally in 11.5 point)

    • layout of provisions, including:

      • indentation

      • position of section headings (eg, the number and heading now appear above the section)

    • format of definitions (eg, the defined term now appears in bold type, without quotation marks)

    • format of dates (eg, a date formerly expressed as the 1st day of January 1999 is now expressed as 1 January 1999)

    • position of the date of assent (it now appears on the front page of each Act)

    • punctuation (eg, colons are not used after definitions)

    • Parts numbered with roman numerals are replaced with arabic numerals, and all cross-references are changed accordingly

    • case and appearance of letters and words, including:

      • format of headings (eg, headings where each word formerly appeared with an initial capital letter followed by small capital letters are amended so that the heading appears in bold, with only the first word (and any proper nouns) appearing with an initial capital letter)

      • small capital letters in section and subsection references are now capital letters

    • schedules are renumbered (eg, Schedule 1 replaces First Schedule), and all cross-references are changed accordingly

    • running heads (the information that appears at the top of each page)

    • format of two-column schedules of consequential amendments, and schedules of repeals (eg, they are rearranged into alphabetical order, rather than chronological).

5 List of amendments incorporated in this reprint (most recent first)
  • Takeovers Code (Trade Me Group Limited) Exemption Notice 2011 (SR 2011/422): clause 3