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The Saudi Arabian Capital Market Authority (CMA) is looking to improve M&A transactions in the kingdom.
The market regulator said on Monday it is seeking public feedback on its draft rules designed to streamline M&A processes. This includes the introduction of a “shelf registration” mechanism that essentially grants pre-approvals on regulatory paperwork for a securities offering.
“This mechanism enables listed companies to register new shares with the CMA for subsequent use in acquiring a company or purchasing an asset, whether in a single transaction or multiple transactions, without the need to seek new approvals,” the CMA said.
The draft rules are intended to protect investors, boost transparency in the Kingdom’s capital market, speed up the completion of M&A deals, reduce procedural burdens and mitigate risks related to trading on non-public information, among others.
The draft, which can be accessed by the public during a 45-day consultation period, includes voting restrictions and meeting quorum guidelines to discourage unfair practices, controlled information sharing and dual voting rights for shareholders in the course of the M&A deal, among others.
The public can access the draft and share their feedback via the Unified Electronic Platform for Consulting the Public (istitlaa.ncc.gov.sa).
(Writing by Cleofe Maceda; editing by Seban Scaria)
