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FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 65 Entities whose securities are stapled and entities operating on a unified basis

FOREIGN ACQUISITIONS AND TAKEOVERS ACT 1975 - SECT 65

Entities whose securities are stapled and entities operating on a unified basis

  (1)   This section applies if:

  (a)   either:

  (i)   the securities in an entity can only be transferred together with securities in one or more other entities; or

  (ii)   an entity has entered an agreement with one or more other entities resulting in the entities being under a legal obligation to operate on a unified basis; and

  (b)   a person takes an action in relation to one of the entities (the target ) mentioned in paragraph   (a); and

  (c)   the target is not:

  (i)   an Australian entity; or

  (ii)   an entity carrying on an Australian business; or

  (iii)   an entity carrying on a national security business; or

  (iv)   the holding entity of an entity mentioned in subparagraph   (ii) or (iii);

    as is required for the action to be a significant action, notifiable action, notifiable national security action or reviewable national security action; and

  (d)   there is at least one other entity mentioned in paragraph   (a) that is an entity of a kind mentioned in subparagraph   (c)(i), (ii), (iii) or (iv).

Note:   Entities in a dual listed company arrangement are examples of entities that are under a legal obligation to operate on a unified basis.

  (2)   For the purposes of this Act, the target is taken to be the same kind of entity as the entity mentioned in paragraph   (d).

Example:   A foreign person acquires interests in securities in the target (see paragraph   40(2)(b)). The target's securities are stapled to securities in another entity. The other entity is a relevant entity that carries on an Australian business (see subparagraph   40(4)(a)(i)). The target is taken to be a relevant entity that carries on an Australian business.