Key facts
- The Australian Securities Exchange (ASX) will introduce new rules.
- The rules cap share issuance for public M&A at 25% of existing capital without shareholder vote.
- The change aims to protect investors from dilution.
- Concerns were raised by James Hardie shareholders.
The Australian Securities Exchange (ASX) is set to introduce new regulations that will limit the amount of new shares companies can issue in public mergers and acquisitions without obtaining shareholder approval. The proposed cap is set at 25% of a company's existing share capital. This new rule is intended to protect investors from the dilution of their ownership stakes. The decision by the ASX follows specific concerns voiced by shareholders of James Hardie, who were worried about the impact of share issuance in takeover situations. The ASX's move aims to provide a clearer framework and enhanced investor protection in such transactions.