This is (fortunately) NOT allowed. Itwould breach the way the creep rule is drafted, and ASIC has specifically commentedon this point. See below for detail. Takeover law is based on CorporationsAct S606 which prohibits acquisitions of ….shares if, because of thattransaction, a person's voting power in the company increases from…..a startingpoint that is above 20% and below 90%. S611 then gives several Exceptionsto this general prohibition. Exceptions 1 and 2 are the major ones, allowing acquisitionsof shares during takeovers, including buying on market.

Exception 9 of S611 is theso-called 3% creep rule.

“An acquisitionby a person if:

(a) Throughout the 6 months before the acquisition thatperson, or any other person, has had voting power in the company of at least 19%; and (b) as a result of the acquisition, none of thepersons referred to in paragraph (a) would have voting power in the company more than 3percentage points higher than they had 6 monthsbefore the acquisition.”

The reference to “6 months before” is crucial.It means Kin must wait for 6 months after the bid expires before it can startto use the creep rule. See ASIC’s reasons below, especially in Para 6.52.

ASIC REGULATORY GUIDE 6Takeovers: Exceptions to the general prohibition is a comprehensive commentaryon what can and cannot be done under the various Exceptions of S611. In particularParas 6.47 to 6.58 on the creep rule

Especially RG 6.51 “Oneresult of the particular formulation of the 3% creep exception is that it is not cumulative with the other exceptions in s611. Forexample, to determine today how far a person’s voting power is above the levelit was six months prior (and therefore how much further a person may be able to‘creep’)……

And RG 6.52We will not give relief to allow a holder to exclude from the 3% calculation initem 9(b) securities or interests acquired in reliance onother exceptions in s611 [therefore including shares bought via takeovers]. Allowing a holder to acquire a further 3% immediately following anacquisition under another exception in s611 does not promote the [legal /parliamentary]policy underlying the 3% creep exception, which is premised on a gradualincrease in voting power over time..