SIDC Module 6 Take-overs and mergers question: minimum mandatory offer price

SIDC Module 6Take-overs and mergers

Before the offer period, an acquirer paid RM2.40 per offeree share eight months ago, RM2.10 five months ago and RM1.95 two months ago. The price is now RM1.80. What is the minimum mandatory offer price?

A RM1.80
B RM1.95
C RM2.10
D RM2.40

Show the answer and explanation

Answer: C. RM2.10

Rule 6.03(1) of the Rules on Take-overs, Mergers and Compulsory Acquisitions requires the mandatory offer price to be not less than the highest price (excluding stamp duty and commission) paid or agreed to be paid by the offeror or persons acting in concert during the offer period and within six months before it began. Purchases at RM2.10 (five months ago) and RM1.95 (two months ago) fall in that window; RM2.40 (eight months ago) does not. The minimum is therefore RM2.10. RM2.40 uses too long a look-back, RM1.95 applies the three-month window that Rule 6.03(2) sets for voluntary offers, and RM1.80 ignores the highest-price rule. Source: Rules on Take-overs, Mergers and Compulsory Acquisitions (SC-GL/1-2016 (R2-2021), revised 28 December 2021) para 6.03 (as at October 2026).

Common mistake

Mixing up the six-month look-back for mandatory offers with the three-month look-back for voluntary offers.

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Related SIDC Module 6 questions

An investor holding 30% of a listed company's voting shares buys a further 4%, taking her to 34%. She has no exemption. What is the consequence?Kenari Bhd has held 40% of Delta Bhd's voting shares for over a year. It buys a further 1.5%, and four months later another 0.8%. Does Kenari incur a mandatory offer obligation?Before its offer for all remaining shares, an offeror held 40% of an offeree. Acceptances bring in another 51%, taking it to 91%. Can it compulsorily acquire the rest under section 222 of the CMSA?

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Original study material mapped to the public SIDC Module 6 syllabus. Unofficial, not endorsed by SIDC or the SC. Verify figures and rules against current guidance before relying on them.