A scheme of arrangement allows a company to reconstruct its capital, assets or liabilities with the approval of its shareholders and the Court. The most common use of a scheme is to effect the same outcome as a takeover.
Under the arrangement, the bidder and target must first reach agreement to propose the scheme to target shareholders, following which approvals are sought from both target shareholders and the Court.
If you are eligible and wish to participate in a scheme of arrangement, you must:
1. Respond to the invitation email Superhero sends to your registered Superhero email once the scheme has been announced. If you did not receive the email, check your spam folder, or contact us through live chat. (If you have unsubscribed from our emails, you will not receive the invitation.)
2. Click on the invitation link and lodge your vote before the closing date stipulated in the email.
3. Superhero will lodge your vote with the company’s share registry after the closing date.
If the scheme is approved, your existing shares will be exchanged for cash and/or bidder’s shares as set out in the terms of the scheme. This will show in the Activity tab in your Superhero Account as:
– A sell transaction in the security taken over in the scheme, with the sale price equivalent to the cash consideration per share outlined in the offer.
– If you receive the Bidder’s shares as part of the scheme, a buy transaction will reflect you acquiring the Bidder’s shares.
If the scheme is not approved, no changes will be made to your Superhero Account.