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Making the CB to Approve a Mandatory Offer

RussianLegal successfully completed a large-scale compliance project in respect of a mandatory offer process related to a share purchase by a holding company comprising enterprises specialising in the design and manufacture of products for building railway lines.

The client intended to purchase the shares in an industrial equipment plant from their minority holders in the short run, which purchase would result in an excess of the corporate shareholding threshold, so the client would have to make a mandatory offer before closing the transactions.

In addition to the tough timing, our work was further complicated by the restrictive measures taken by the governmental authorities to fight the new coronaviral infection (COVID-19), which paralysed the activity of the Russian Central Bank. That substantially delayed the mandatory offer process and changed the procedures for submission and processing of the required documents.


Working closely with the regulatory authority and the registrar and being guided by the explanations from superior authorities on how the business should be arranged for and run during the quarantine period, RussianLegal managed to cause both the mandatory offer and the related acceptance result report to be officially approved with only a minor delay.