FSC eases regulations to spur M&As
gettyimagesbankBy Anna J. ParkIn a move to foster active corporate M&As to bring about economic innovation, the Financial Services Commission (FSC), the country's top financial regulator, has decided to ease the financial burden on potential buyers to prove their capital qualifications, when it comes to launching tender offers.According to the FSC on Sunday, a potential corporate buyer will face less burdensome conditions, when it makes tender offers. Up until now, a potential tender offer buyer is required to prove their financial capacity by depositing the total amount of money necessary for purchasing targeted stocks at local institutions during the entire tender offer period. As this requirement has often been criticized to be an excessive financing cost for potential buyers, the FSC will now acknowledge financial investors' letters of commitment (LOC), capital contribution agreements or investment agreements, as proof of a buyer's capacity to finance a tender offer, thereby, easing the previous requirement. The move is one of many measures that the top financial regulator an
