The Central Bank of Bahrain (CBB) intends to issue new rules to govern takeovers, mergers and acquisitions (TMA), as well as share repurchases of publicly-listed companies in the kingdom.

The proposed new rules will soon be sent to industry for consultation before being finalised by the CBB.

In its entirety, the Capital Markets Rulebook will govern all activities related to the markets for securities.

The upcoming consultation advances the CBB's work on the Capital Markets Rulebook.

Module TMA will provide an orderly framework within which takeovers, mergers, acquisitions and share repurchases are to be conducted and sets the thresholds for substantial transactions and control.

In addition, requirements relating to timing and mode of offer, announcements, documentation and disclosure of adequate information to enable shareholders to make an informed decision as to the merits of an offer are also included.

The module also seeks to ensure that shareholders in the company subject to a takeover are given sufficient information, advice and time to consider and decide on the offer.

The module seeks to achieve fair treatment by requiring equality of treatment of shareholders of publicly-listed companies, which are targets in a takeover, merger, acquisition or share repurchase.

Since the primary purpose of the module is to facilitate fair treatment for all shareholders of publicly-listed companies, it is not concerned with the financial or commercial advantages or disadvantages of a takeover, merger or acquisition, which are matters for the company and its shareholders to decide on.

"The Capital Markets Rulebook project and module in particular will facilitate the growth and development of the capital market in a sound and prudent manner," said CBB capital markets supervision director Ali Salman Thamer.

A consultation paper is scheduled to be issued next month.

"The CBB values the comments of the capital markets industry and related parties and looks forward to a constructive dialogue on the new proposals," said Thamer.

The consultation paper will be available on the CBB website at www.cbb.gov.bh -TradeArabia News Service