Section 975 | Shares already held by the offeror etc

(1)The reference in section 974(2) to shares already held by the offeror includes a reference to shares that he has contracted to acquire, whether unconditionally or subject to conditions being met.This is subject to subsection (2).

(2)The reference in section 974(2) to shares already held by the offeror does not include a reference to shares that are the subject of a contract—

(a)intended to secure that the holder of the shares will accept the offer when it is made, and

(b)entered into—

(i)by deed and for no consideration,

(ii)for consideration of negligible value, or

(iii)for consideration consisting of a promise by the offeror to make the offer.

(3)In relation to Scotland, this section applies as if the words “by deed and” in subsection (2)(b)(i) were omitted.

(4)The condition in section 974(2) is treated as satisfied where—

(a)the offer does not extend to shares that associates of the offeror hold or have contracted to acquire (whether unconditionally or subject to conditions being met), and

(b)the condition would be satisfied if the offer did extend to those shares.

(For further provision about such shares, see section 977(2)).