Post by ASX

ASX Ltd has today released a public consultation paper that proposes, among other things, that large listed companies generally face a 25% cap on the amount of new shares they can issue in public merger deals, before they must seek a shareholder vote. ASX’s consultation paper and exposure draft - Shareholder approval of dilutive acquisitions and changes in admission status - follows ASX’s decision last October to seek feedback on whether its shareholder approval rules should be updated for deals that can have a big impact on investors. Crucially, this focused on large, share-funded public takeovers, much like the James Hardie-Azek deal, that generated public attention in early 2025.  Over the past eight months, ASX has consulted widely, with roundtables, formal meetings and 45 written submissions. ASX has listened to the market and heard loud and clear the support for more protections against share dilution in public takeovers and mergers, and enduring changes to a company’s listing status.  ASX is seeking further market feedback on the exposure draft by Wednesday 29 July 2026, to be submitted via email. More information can be found here: https://lnkd.in/erffQTjH