CMA LAW: The Capital Markets Authority Holds its 5th Awareness Workshop for the Second Quarter of 2015

Kuwait, 12th May 2015 – The Capital Markets Authority (CMA) has held on Tuesday 12/5/2015 its 5th awareness workshop, which is part of its awareness workshops program for the second quarter of 2015. The workshop took place in Khaled Al-Kharafi Hall at Kuwait Stock Exchange at 12:30 p.m. It was titled "CMA Regulations Regarding the Mandatory Acquisition Procedures No. (C.M.A/M.R.S/M.A/2013/7)". The speakers have discussed throughout the workshop three main aspects, which are as follows:
- Provisions of the mandatory offer
- Procedures to be followed for executing the mandatory offer
- Fee schedule of the mandatory offer

At first, the speakers reviewed the meaning of the mandatory offer and the provisions of Article (271) of the Executive Bylaw of Law No. 7 of 2010 on the mandatory acquisition. Then they covered the procedures of executing the mandatory offer through a number of steps, which are as follows:

- Announcing the mandatory offer
- Appointing an investment advisor and acquisition process manager
- Submitting the acquisition offer document and all the required documents to the CMA
- Publishing and announcing the acquisition offer if the CMA approves the document
- Recommendation of the offeree company's Board of directors
- Collection of shares through registration in the acquisition process manager's portfolio on the 8th day of publishing the offer document
- CMA's approval of executing the acquisition deal

Then the workshop discussed the fee payment of studying the offer document. The offeror must pay the acquisition deal fee as stipulated in Resolution No. 3 of 2015 on "Amending CMA Board of Commissioners Resolution No. 19 of 2013 Regarding Issuance of Fee Schedule".
Afterwards, participants' inquiries were answered by the speakers, who included Mrs. Hanan Al-Gharabally– Director of Merger & Acquisition Department, Mr. Fahad Al-Subaih – Representative of M & A Department, Mr. Ahmed Marafi – Director of Awareness Office, and Ms. Aisha Al-Nusf – Representative of Legal Affairs Sector.

Clarification to Editors:

The Capital Markets Authority was established pursuant to Law No. 7/2010, approved by the Kuwaiti Parliament in February 2010, and amended by Law No. 108/2014. Pursuant to the Law, the Authority shall regulate and supervise the securities activities, achieve transparency and fairness, oblige the listed companies to execute the Corporate Governance Principles, and protect the investors from the unfair practices which violate the Authority's Law.

Furthermore, the Law's provisions stipulate the supervision of the merger, acquisition, and disclosure operations. The Authority also aims at providing awareness programmes related to securities activities. 

For more information kindly contact:

Public Relations & Media Office
Tel: 22903062
Fax: 22410169
Email: pr-media@kuwaitcma.org  
        

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