The Takeovers Code 1998 was repealed with the inception of the Securities Commission Act 2015. A new code was recommended by the Commission and came into effect around June 2023.
The new code reflects the Government commitment to allow greater citizen participation and enable Papua New Guineans to benefit from the country’s resources through the introduction of the National Interest Provision.
Although the changes may have some implications for investors, the Commission, as the watchdog of the capital market industry, has an obligation to the people of this country and to future generations to provide the necessary tools for citizen participation in major corporations, particularly within the resources sector.
The National Interest concept is simple: if mergers and takeovers are citizen-oriented, allow many Papua New Guineans to benefit through share ownership, and do not negatively affect the value of existing shareholders’ shares, then the transaction may be considered to be of national interest.
We have noted comments and opinions provided by members of the public through online platforms and websites. We encourage the public to seek proper legal advice or reach out to our office for further guidance rather than being misguided or misled by information that may misconstrue the relevant facts.
