Im checking now but there are provisions in within's ASIC's framework that can prevent a bidder making a takeover for an upstream company (NZO) if they control greater than 20% of the shares in the downstream company (CUE) without also making a takeover offer for CUE.
When will ASIC insist that the bidder makes a downstream takeover bid?
If ASIC grants relief to a bidder, it may impose a number of conditions to that relief.
ASIC has said that it will generally require the bidder to make a downstream bid when:
control of the downstream company appears to be a ‘significant’ purpose,
the shares in the downstream company are a substantial part of the assets of the upstream company (generally speaking, at least 50 per cent of the assets), or
effective control of the downstream company will be obtained.
The last point will be true so im my humble legal opinion i dont think Zeta can proceed without making a bid for CUE as well.
I'll happily get in the way as I believe NZO are better owners/controllers of CUE than Zeta would be unless of course Zeta offer a fair takeover for CUE.
