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Definition

When one shareholder acquires more than 35% of a listed company, he/it is obliged by section 123 of the Companies Act (71 of 2008) to make an offer to all the shareholders of the company to acquire their shares. In other words, as soon as a shareholder buys that final share which gives him/it 35% it triggers an automatic mandatory offer to the other shareholders. You will often find that acquiring companies keep their shareholding below the 35% threshold to avoid having to make a mandatory offer. On 28th February 2024 the Takeover Regulation Panel (TRP) announced that Canal+, a French company, was obliged to make a mandatory offer in for the remaining shares of MC Group (MCG) because its shareholding of that company (MCG) had exceeded 35%.

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