Neratel

[CityFarmer]

I never understand why the takeover code mandates a mandatory offer which is usually a waste of time and money; cos in most instance, I dun think the minority shareholder would sell to the offeror; especially when the offered price is at a discount to the 1 month VWAP. IMO the takeover code should be amended for a mandatory offer to be made only when a significant premium (>10%) over the 1 month VWAP. Otherwise who in his right mind would sell to the offeror??

Well, in case the shareholders have poor view of the offeror or the stock price drops below mandatory offer. I suppose many will rush to sell their shares to offerer if that happens.
Or the share is so illiquid that selling to offeror is a better choice than selling it at market price

The mandate is a measure to protect minority shareholders. It ensure similar choice also available to minority shareholders.

The takeover code should not decide on behalf of the shareholders IMO.