(Reuters) -The Australian stock exchange operator ASX said on Sunday that it had initiated a process for its rules regarding shareholder approvals for mergers and acquisitions.
The ASX’s decision to review its listing process came a day ahead of fibre-cement maker James Hardie saying it would hold a shareholder vote before making any decision to change its ASX listing status.
A group of investors recently urged a review of Australia’s listing rules, arguing it’s unfair that companies can issue shares for acquisitions without shareholder approval.
They cited James Hardie’s proposed $8.75 billion acquisition of AZEK, saying the deal would severely dilute existing shareholders’ interests and alter their rights without a vote.
The bourse operator said the outcry surrounding James Hardie’s waiver request had triggered increased investor interest in strengthening shareholder approval requirements for major transactions involving listed companies, thus prompting them to launch a review process.
Shares of James Hardie were up 4.7%, as of 0026 GMT.
(Reporting by Rajasik Mukherjee; Editing by Rashmi Aich)
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