What is a scheme of arrangement?
A scheme of arrangement is a type of corporate action. A scheme of arrangement is typically used to execute a change in the structure of a company, such as during a takeover. It is a court-approved agreement between a company and its shareholders or creditors to allow a bidder to acquire all of the shares in the company.
For a scheme of arrangement to pass, shareholders holding at least 75% of the issued shares must vote in favour. If this happens, the bidder or ‘buying company’ will obtain 100% of the shares in issue – regardless of whether a shareholder voted in favour or not – and the shareholders will receive payment (shares, cash, or a combination of both).
If a scheme of arrangement is announced relating to a company that you hold shares in, we'll send you a secure message. This will explain the terms of the scheme, what you need to do about it (if anything), and how to confirm your chosen option. We’ll also let you know the deadline for when you need to make a decision.
You can read your secure messages by logging in and in the ‘My account’ menu, clicking 'Secure messages'.
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