The bidding process:
1, select the target of tender offer;
2. Make a tender offer report and submit relevant materials to the regulatory authorities;
3. Announce the tender offer;
4. Purchase shares according to the contract and handle the transfer formalities.
Article 62 of the Securities Law of People's Republic of China (PRC) stipulates that investors may acquire listed companies by legal means such as tender offer and agreement purchase.
Article 76 stipulates that after the acquisition is completed, if the purchaser merges with the acquired company and dissolves the company, the original shares of the dissolved company shall be replaced by the purchaser according to law.
After the acquisition is completed, the purchaser shall report the acquisition to the the State Council securities regulatory body and the stock exchange within fifteen days and make an announcement.
Legal objectivity:
Interim Regulations on the Administration of Stock Issuance and Trading
Article 51
When the tender offer expires, if the common shares held by the tender offer do not reach 50% of the total issued common shares of the company, the tender offer fails;
Except for issuing a new tender offer, the purchaser shall not purchase more than 5% of the total issued common shares of the company every year thereafter.
Upon the expiration of the tender offer period, the company shall terminate its trading in the stock exchange if the common shares held by the tender offer reach more than 75% of the total issued common shares of the company.
When the total number of shares offered by the offeror is less than the total number of shares pre-offered, the offeror shall purchase shares from all pre-offerees in proportion.
When the tender offer period expires and the shares held by the tender offer reach 90% of the total shares of the company, the remaining shareholders have the right to sell their shares to the tender offer under the same conditions.