Takeover offer, page-2

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.

Link below
https://www.lexology.com/library/detail.aspx?g=bd7003bb-de67-419e-89ee-9eabfe155349