Material Transactions and Main Business Activity Changes

Chairman of Capital Market and Financial Institutions Supervisory Agency Decree No. KEP-614/BL/2011 on Material Transactions and Main Business Activity Changes (“Decree”) has been issued to help issuers or public companies access financing for material transactions.

The Decree consists of three articles and one appendix, which contains Regulation IX.E.2.

A material transaction, pursuant to Item 1 (a) (2) of Regulation IX.E.2, includes any investment in a company, project, and/or business; every purchase, sale, asset or business exchange; asset leasing; asset guarantees; and/or company guarantees that are valued at 20 percent or more of the company’s equity.

In comparison, Regulation IX.E.3 of Chairman of Capital Markets and Financial Institutions Supervisory Agency Decree No. KEP-413/BL/2009 on Material Transactions and Main Business Activity Changes (“Decree 413/2009”) included buying shares for acquisitions and purchasing shares in the definition of a material transaction.