Kangaroo Resource Limited
The topic of this group assignment is on reverse acquisitions. These transactions are also commonly known as reverse takeovers, reverse mergers or backdoor listings in the financial media. In this assignment, students will be examining various aspects of this type of transactions, including legal/regulatory requirements, corporate governance issues, deal structuring, economic rationale and accounting implications.
1. What regulatory approvals are required for the completion of the transaction? Your
discussion should cover the relevant provisions of both the Corporations Act 2001 and
ASX Listing Rules. You should also address the responsibilities of the board of directors and the role of the Independent Expert (if any) in such a transaction.
2. Why reverse acquisitions involving a publicly-listed company and a private firm are
commonly referred to as ‘backdoor listing’? What do you think are the potential costs and benefits to the (i) listed company, and (ii) private firm?