Section 12: Conditions for mergers and takeovers

12. Conditions for mergers and takeovers (1) Where— (a) 2 or more companies or bodies corporate, engaged in the growing of sugar cane, the milling of sugar or any activity relating to the use of sugar cane by-products decide to merge to form only one company and that company gives an undertaking in writing to the Minister that the company shall— (i) be listed on the Stock Exchange; and (ii) have the Trust, or any body controlled by the Trust, or any specified entity, as a shareholder holding, with the concurrence of the Mauritius Cane Industry Authority, a mutually agreed percentage of the shareholding of the company for a total consideration of one rupee; or (iii) sell a mutually agreed extent of its lands with the concurrence of the Mauritius Cane Industry Authority, to the Trust, or any body controlled by the Trust, or any specified entity, at a nominal price of one rupee, within a period of 2 years of the date of the merger; or (b) body corporate engaged in any of the aforesaid activities and a company or its holding company give an undertaking in writing to the Minister that the company or its holding company shall— (i) be listed on the Stock Exchange; and (ii) have the Trust, or any body controlled by the Trust, or any specified entity, as a shareholder holding, with the concurrence of the Mauritius Cane Industry Authority, a mutually agreed percentage of the shareholding of the company for a total consideration of one rupee; or [Issue 9] S49 – 10 Revised Laws of Mauritius (iii) sell a mutually agreed extent of its lands with the concurrence of the Mauritius Cane Industry Authority, to the Trust, or any body controlled by the Trust, or any specified entity, at a nominal price of one rupee, within a period of 2 years of the date of the takeover, subsection (2) shall apply. (2) Notwithstanding anything to the contrary, no duty or tax shall be levied on the transfer of assets under the Registration Duty Act, the Transcription and Mortgage Act or the Land (Duties and Taxes) Act, as the case may be, provided that the deed witnessing the merger or takeover is accompanied by a copy of the undertaking referred to in subsection (1) (a) or (b) duly certified by the Permanent Secretary. (3) – (4) — (5) In this section— “holding company” has the same meaning as in the Companies Act; “Stock Exchange” means the Stock Exchange established under the Stock Exchange Act. (S. 12 came into operation on 17 September 2001.) [S. 12 amended by s. 27 (b) of Act 20 of 2002 w.e.f. 10 August 2002; s. 29 (d) of Act 15 of 2006 w.e.f. 7 August 2006.] Sub-Part B – Incentives to Planters and Millers