Australian Exchange Operator Reevaluates M&A Rules Following James Hardie Backlash

(Cryptonesia) – The Australian Securities Exchange (ASX), announced on Sunday that they have started a procedure to revise their guidelines concerning shareholder approval for mergers and acquisitions.

The Australian Securities Exchange announced plans to review its listing procedures just one day prior to fibercement manufacturer James Hardie declaring that it would seek shareholder approval before deciding whether to alter its presence on the ASX.

Recently, a collection of investors called for an examination of Australia’s listing regulations, contending that it is unjust for firms to be able to issue shares for takeovers without obtaining consent from shareholders.

They mentioned James Hardie's suggested $8.75 billion purchase of AZEK, stating that this transaction could significantly reduce the shareholding percentage of current investors and change their rights without seeking approval through a vote.

The exchange operator mentioned that the controversy around James Hardie's waiver request had sparked greater investor interest in tightening shareholder approval standards for significant deals involving publicly-listed firms, leading them to initiate a review process.

James Hardie shares had risen by 4.7% as of 12:26 AM GMT.

(Reported by Rajasik Mukherjee; Edited by Rashmi Aich)