Tender Offers in Korea: Conditional Offers under Korea Capital Markets Act

The Korean Capital Market Act and related regulations dictate the basics for tender offers in Korea.  The rules in Korea are, simple:

1.  If the total number of tendered shares is less than the intended number of shares to be purchased by the tender offeror, the offeror may not purchase any of the shares; and

2.  If the total number of tendered shares is more than the number that is intended to be purchased by the tender offeror, the tender offeror shall purchase the shares pro rata.

The tender offeror is required to validate that it has the resources to purchase the shares.

Other articles on The Korean Law Blog that may be of interest to the reader:

• Minority Squeeze-outs in Korea
• Korean M & A Basics
• Korean Due Diligence Check List
• Selling to Korea via Distributors, Agents & other Non-Direct Sales Channels
• Joint Venture/Partnerships in South Korea
• Test the Korean Waters and Then Hit China
• Protecting your Intellectual Property in Korea
• Korean Outsourcing: Legal Basics
• Tax Qualified Mergers in Korea
• Due Diligence in Korea
• New Corporate Forms in Korea