New Zealand Law Society - Abano Takeover decision provides clarity, says Takeovers Panel

Abano Takeover decision provides clarity, says Takeovers Panel

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The High Court's decision in Abano Healthcare Group Ltd v Healthcare Holdings Partners Ltd [2018] NZHC 817 (27 April 2018) provides clarity in deciding future disputes on cost reimbursements, Takeovers Panel Chief Executive Andrew Hudson says.

The High Court ruling related to the reimbursement of expenses related to the unsuccessful partial takeover attempt of Abano Healthcare by Healthcare Partners.

The High Court found that Abano could recover all of the costs it sought to recover from Healthcare Partners.

"The Panel will carefully consider the Court's decision and determine whether amendments to the Panel's 2017 Guidance Note on the Process of Cost Reimbursement under the Takeovers Act are appropriate. In the meantime, market participants should contact the Panel executive with any questions about such disputes," Mr Hudson says.

Recent amendments to the Takeovers Act 1993 mean the jurisdiction over future costs disputes will move to the Panel.

Rule 49 of the Takeovers Code provided for directors a target company and the company itself to be reimbursed for any properly incurred expenses after a failed takeover. This has been replaced by sections 47-53 of the Takeovers Act.

Before the change, disputes about reimbursements were adjudicated by the District Court or High Court, although these were often settled out of court.