- 1. TAKEOVER
Index
Definition of Takeover
Why company do takeover of another company?
When Company do takeover of another company?
Which companies can be takeover?
Purpose of Takeover
Type of Takeover
a. Friendly Takeover
b. Hostile Takeover
Advantage of Takeover
Disadvantage of Takeover
Procedure of Takeover
- 2. Definition of Takeover
A takeover bid is an offer to purchase enough share of a
company to overtake the current majority shareholder.
Takeover implies acquisition of control of a Company
which is already registered through the purchase or
exchange of shares.
Takeover takes place usually by acquisition or purchase
from the shareholders of a company their shares at a
specified price to the extent of at least controlling interest in
order to gain control of the company.
- 3. Why company do takeover of
another company?
if the smaller company have proven their profitability
for seeking finance to grow their products which have high
demand may attract the attention for an acquisition
be avenue for larger acquiring companies to grow their
company
Small companies may become a takeover target if they fill a
niche in the market that the bidder operates within.
- 4. When Company do takeover of
another company?
When company has a good market value and
want to become bigger company, then
companies try to purchase or included another
company to itself company.
- 5. Which companies can be takeover?
Any private company having good share and
market value can be takeover of small
company.
- 6. Purpose of Takeover
Takeover mains purpose to make bigger or
larger company from a small Company.
- 7. Types of Takeover
Friendly Takeover
Hostile Takeover
- 8. Friendly Takeover
When a bidding company attempts to buy the
majority shares without informing the board of
directors first, this is considered a hostile
takeover.
- 9. Hostile Takeover
When the board rejects the friendly takeover
offer, the bidder may choose to continue
pursuing shareholders without the input of the
board of directors.
- 10. Advantage of Takeover
To Increased sales and revenue, increased
market share and economies of scale.
- 11. Disadvantage of Takeover
Job cuts as a result of a takeover is a
disadvantage to the employee and reduced
competition and choice for consumers.
- 12. Procedure of Takeover
A company may acquire the shares of a unlisted company
through what is called acquisition under Section 395 of the
Companies Act, 1956.
where the shares of the company are widely held by the
general public, it involves the process as set out in the SEBI
(Substantial Acquisition of Shares and Takeovers)
Regulations, 1997, as amended in 2002, 2004 and 2006.
The term ‘Takeover’ has not been defined under SEBI
(Substantial Acquisition of Shares and Takeovers)
Regulations, 1997.
- 13. Thank You
