Pursuant to Qatari legislation, individuals having access to data related to an M&A transaction in Qatar are prohibited from disclosing it to 3rd parties (unless there’s an urgent need for that). If any information is disclosed, persons who received it must also maintain complete confidentiality.
Terminating an M&A agreement requires obtaining permission from the QFMA, a Qatari financial authority. It has some broad powers to either grant or deny permission for the conclusion of an M&A deal in the state of Qatar.
Financing Public M&A Deals in the State of Qatar
Conducting M&A transactions in the State of Qatar requires getting QFMA consent & complying with some stringent regulatory requirements. Please note that investment funds aren’t allowed to accept any loans or engage in transactions that may lead to an increase in the number of financial liabilities.
Displacement of Minority Shareholders
Owning an interest or buying a share in a Qatari company that exceeds seventy five percent of its total share capital requires notifying the QFMA. Any offers for the buyout of the remaining shares from shareholders are to be made within a month from acquiring seventy five percent of an entity’s authorized capital.
Concluding an M&A Deal in the State of Qatar: Stages
Below are some of the main stages of the M&A process in Qatar:
- Individuals or companies wishing to conclude an M&A deal in the State of Qatar are required to submit a schedule of a transaction to the QFMA not later than 2 weeks after disclosing a preliminary agreement. If they can’t meet the said deadline, they’re required to inform the regulator of it without delay.
- Individuals or companies making an offer for the purchase of a company are required to submit all the necessary documents to the QFMA & obtain its approval one month before a GSM is held.
- PLCs are required to submit a copy of a private placement memorandum within 72 hours after receiving the QFMA’s approval & not later than 2 weeks before an extraordinary GSM is held.
- Once an offer for the purchase of a Qatari company is made, an M&A process must be completed within 30 days from the date a GSM’s decision to endorse a transaction was issued. If an extraordinary GSM isn’t held by the said deadline, the QFMA can extend it.
If the regulator gave its permission for withdrawal of an offer for the purchase of a private Qatari company, a new offer can’t be made until 180 days have passed since the withdrawal date.
Seeking to buy a Qatari company? Need advice on regulation of M&A deals in the State of Qatar? Please consider contacting IQ Decision UK.