A High Court ruling moves the venue for New Zealand costs disputes
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A High Court ruling has put costs disputes under the jurisdiction of the Takeovers Panel.
Justice Mathew Downs ruled that Abano Healthcare Group can recover all the costs it sought from Healthcare Partners in relation to the latter’s failed hostile takeover bid.
“The High Court’s decision provides clarity in deciding future disputes,” said Andrew Hudson, the Takeover Panel’s chief executive. “The panel will carefully consider the court’s decision and determine whether amendments to the panel’s 2017 Guidance Note on the Process of Costs Reimbursements under the Takeovers Act are appropriate. In the meantime, market participants should contact the panel executive with any questions about such disputes.”
Recent amendments to the Takeovers Act 1993 have moved jurisdiction of future costs disputes to the Takeovers Panel, the body said.
Sections 47 to 53 of the Takeovers Act have replaced Rule 49 of the Takeovers Code, which provided for directors of a target company and the company to be reimbursed for any property incurred expenses after a failed takeover.
Matters like these were previously brought before the District Court or the High Court.
Fees claimed by Abano included $277,000 for legal fees to Harmos Horton Lusk, $375,000 for investment bank advise to Forsyth Barr, and $67,000 for public relations fees to Ellis & Co. Abano incurred costs of about $1m in relation to the failed bid.
