Regulation on tender offer softened

The revision is regulated on Regulation No.IX.F.1 on Voluntary Tender Offer, along with the revision result of Regulation No. IX.H.1 on Taking over of Public Companies.Head of Law and Legal Aid Bureau at Indonesian Capital Watchdog (Bapepam-LK) Robinson Simbolon confirmed that the revision will complete the previous regulation to provide a legal certainty over share refloating from tender offer."The old regulation has synchronized on the point [voluntary tender offer]. The revision is just to distinguish it from mandatory tender offer, he told Bisnis, yesterday.Both regulations has already released at the end of May, along with Regulation No. IV.C.4 on Management Guidance for Protected Mutual Fund, Guaranteed Mutual Fund, and Index Mutual Fund.In the meantime, on the new regulation of IX.H.1, the tender offer duty is only obligated for shareholder of public company controlling more than 80% of total shares.In addition, the regulation also stated that there are 12 company controllers that are excluded from mandatory tender offer, namely taking over by legal decision, merger, grant, marriage, and heritage.However, the revision is viewed to puzzle market, while the capital market authority is also assessed to tend to anticipate frivolous cases as well as other cases that havent already occurred yet in the capital market, as affirmed by Head of Indonesian Companies Association (AEI) Airlangga Hartanto.Maintaining issued sharesHead of Corporate Financial Assessment Bureau for Real Sector at Bapepam-LK Anis Baridwan confirmed that the regulation was formulated to escalate effectiveness and efficiency of tender offer in the market due to avoid the declining total issued shares.Nevertheless, the capital market authority is expected to prioritize its work and authority to attract international companies that are operated in Indonesia and havent listed their shares in national market.Consequently, multinational companies in Indonesia will not only provide benefit to abroad, but also list their shares in the market. Indonesia can be a place for hot money to stay longer, he said.On the other hand, there is no solution yet from the capital market authority until now to overcome the abandoned shares, so their corporate actions get stuck. (t01/msw)