Legal Insights

COVID-19 and investment

• 08 April 2020 • 0 min read

Despite testing economic conditions, many companies are still looking for opportunities to invest and grow.

While the economic impact of COVID-19 is significant and still unfolding, moves have been made to give companies confidence to continue with plans to invest. These include temporary measures by the Australian Securities Exchange to facilitate capital raising and changes to the foreign investment review framework designed to protect the national interest.

Capital raising

M&A due diligence in the time of COVID-19: What are the ‘hangover’ risks in corporate transactions?

M&A activity continues despite COVID-19, and the changing circumstances may be providing opportunities for buyers. However, measures taken to keep businesses alive during this time may leave you with a nasty hangover post-acquisition.

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ASX and ASIC introduce new temporary rules to facilitate capital raising

The Australian Securities Exchange has recently introduced temporary changes to its rules to facilitate emergency capital raisings against the current backdrop of the COVID-19 pandemic. Our Equity Capital Markets team outlines the changes.

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Foreign Investment Review Board – Response to COVID-19

The Treasurer of Australia, The Hon Josh Frydenberg MP, announced on 29 March 2020 temporary changes to the foreign investment review framework, designed to protect Australia’s national interest.

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Foreign Investment Review Board (FIRB) – COVID-19 changes and impact on capital raising and M&A

The Commonwealth Government announced temporary changes to the foreign investment review framework, designed to protect Australia’s national interest during the COVID-19 crisis. Whilst these temporary measures are in place, Australian companies (particularly small cap companies) looking to firm up additional funding from foreign investors or vendors seeking to sell Australian businesses or companies to foreign investors, are now more likely to require FIRB approval before these investments or acquisitions can take place.

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Year-end earnings surprises and continuous disclosure: COVID-19 impact

With the financial year end (or half year) looming for many companies and the impact of COVID-19 over the last few months becoming clearer, ASX listed companies need to think carefully about their market disclosure obligations.

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