Public Companies - Acquisition

The Capital Market and Financial Institutions Supervisory Agency has issued Decision No. KEP-259/BL/2008 which amends Rule No. IX.H.1 and repeals Decision No. Kep-05/PM/2002. The perfection of the Rule relates to six specific provisions.

First, the tender offer price with respect to the acquisition of a public company is the average highest price of the shares traded on the Indonesian Stock Exchange in the 90 days prior to the offer.

Second, the direct acquisition of shares in a public company that are not listed or traded on the Indonesian Stock Exchange requires that the minimum offer price must be the actual price for the acquisition. This price must be the highest price recorded.

Third, where the shares of the public company have not been listed or traded in the previous 90 days to the offer then the offer price is to be the highest price recorded in the previous 12 months.

Fourth, where the acquisition of the shares is indirect and those shares have not been listed or traded on the Indonesian Stock Exchange then the minimum price is that set by an estimator.

Fifth, where the acquisition of the shares is indirect and the shares have not been listed or traded in the previous 90 days then the minimum offer price is the highest price recorded in the 12 months prior to the offer.

Sixth, the indirect acquisition of shares that have been listed and traded on the Indonesian Stock Exchange requires that the minimum price be the average highest price of those shares in the 90 days prior to the announcement.

Any individual or company looking to acquire shares must be familiar with the new provisions.