GREY:WFREF - Post by User
Post by
BlueCollar51on Mar 12, 2016 2:24pm
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Post# 24651815
Investment Canada Act
Investment Canada Act Thresholds for Review Private sector WTO investments Pursuant to subsections 14.1(1) and (2) of the Investment Canada Act ("the Act"), starting April 24, 2015, the review threshold is $600 million in enterprise value for investments to directlyFootnote * acquire control of a Canadian business by: - WTO investors that are not state-owned enterprises; and
- by non-WTO investors that are not state-owned enterprises where the Canadian business that is the subject of the investment is, immediately prior to the implementation of the investment, "controlled by a WTO investor".
Starting April 24, 2017, the review threshold will be $800 million in enterprise value. Starting April 24, 2019, the review threshold will be $1 billion in enterprise value. Starting January 1, 2021, and for subsequent years, the threshold level will be adjusted annually based on growth in nominal GDP in accordance with the formula set out in subsection 14.1(2) (i.e., the growth in Nominal GDP at market prices multiplied by the threshold amount determined for the previous year.) The manner of calculating the enterprise value of the Canadian business that is the subject of the investment is prescribed in sections 3.4, 3.5 and 3.6 of the Investment Canada Regulations depending on whether the Canadian business is a publicly traded entity, non-publicly traded entity or acquired by the acquisition of assets, respectively. https://www.ic.gc.ca/eic/site/ica-lic.nsf/eng/h_lk00050.html ** The value of this transaction, abt. $770m is above the “current” $600m threshold and therefor subject to review by Investment Canada.
Personally I believe that the odds of this transaction being approved are very good.
My understanding is that the process normally takes 45 days but it can be extended.
As Always; Do Your Own Due Diligence; It’s Your Money !!