The Panel has released a consultation paper and a draft new Guidance Note concerning dividends. The paper outlines the Panel’s approach to the treatment of franking credits in the context of takeover bids and includes detail about:
- the inclusion of franking credits in the ‘headline’ offer price, and
- a bidder’s deduction of the value of any franking credits from the amount payable to a Target’s shareholders.
In particular, it may be that in certain circumstances each of these may give rise to unacceptable circumstances. The Panel has asked for submissions/comments to be received by Friday 28 February 2014.