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:

  1. the inclusion of franking credits in the ‘headline’ offer price, and
  2. 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.

Further detail regarding the updated Guidance Notes and the consultation process can be found at the  following link: http:// www.takeovers.gov.au/content/DisplayDocaspx?doc=consultation/default.htm