IIAC RESPONDS TO PROPOSED AMENDMENTS TO NI 51-102 RELATED TO THE BUSINESS ACQUISITION REPORT (BAR) REQUIREMENTS
The IIAC expressed its support of the Proposed Amendments, which would reduce the number of acquisitions which are not, in substance, significant in the context of the issuer’s circumstances that trigger the BAR threshold. The new threshold would require filing of a BAR only if at least two of the existing Asset, Investment or Income Tests of significance are triggered. The proposed increase in the threshold from 20% to 30% appropriately recognizes the relatively smaller size of Canadian issuers, and the burden of preparing a BAR for smaller transactions.
In order to more accurately reflect the fair value of an acquired business in relation to the issuer, the IIAC recommends that the Investment Test be revised so that the issuer’s investment in an acquired business would be compared to the aggregate worldwide market value of the issuer’s voting and non-voting common equity (based on a volume weighted average price over a number of trading days immediately preceding the applicable date) to more accurately demonstrate the economic significance of the acquisition to the issuer.
If you have any questions regarding this submission, please contact Susan Copland.