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Why ASIC wants to ban stub equity M&A tactic

Chanticleer is Australia's pre-eminent business column.

The takeover of Capilano Honey by Albert Tse's Wattle Hill and Roc Partners Investment Fund has left a bad taste in the mouth of the corporate regulator.

The Australian Securities and Investment Commission is examining ways of closing a loophole that allowed the bidders to offer Capilano's mum and dad investors equity in a vehicle created for the takeover, despite the fact this vehicle did not offer retail investors the same level of disclosure and governance protections as does a public company.

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    Original URL: https://www.afr.com/chanticleer/why-asic-wants-to-ban-stub-equity-ma-tactic-20181220-h19b8p