The Takeover Code

1 The Takeover code The Panel on takeovers and Mergers All rights reserved ISBN 0 9500466 6 3 PFBPH Typeset and printed by RR Donnelley. WITH THE PANELG eneral enquiriesPostal communications and by hand deliveries should be addressed to:The Secretary The Panel on takeovers and Mergers 10 Paternoster Square London EC4M 7 DYYou may also contact the Panel as follows:Telephone: +44 (0) 20 7382 9026 Fax: +44 (0) 20 7236 7005E-mail: Surveillance UnitThe Panel s Market Surveillance Unit may be contacted as follows:Telephone: +44 (0) 20 7638 0129 Fax: +44 (0) 20 7236 7013E-mail: (Note.)

2 This e-mail address is to be used solely for the transmission of disclosure forms and not for general enquiries or questions)Electronic filing of documents, announcements and other informationCopies of documents, announcements and other information published in connection with an offer that are required to be sent to the Panel in electronic form should be sent by e-mail to THIS VOLUME UP-TO-DATEF uture amendments or additions will be made by the issue of replacement or new and when amendments or additions are published they will be accompanied by an updated checklist of page references (see inside back cover).

3 In this way it will be possible to be sure that the volume is copies may be obtained from the Secretary, The Panel on takeovers and Mergers, at a price of 50 each. There is an annual charge of 25 for the amendments DATESF irst edition in loose-leaf format 19 April 1985 Second edition 26 January 1988 Third edition 25 October 1990 Fourth edition 8 July 1993 Fifth edition 16 December 1996 Sixth edition 12 July 2000 Seventh edition 1 May 2002 Eighth edition 20 May 2006 Ninth edition 30 March 2009 Tenth edition 19 September 2011 Eleventh edition 20 May 2013 Twelfth edition 12 September 2016(From time to time amendments are issued.)

4 SummaryTHE CITY code ON takeovers AND MERGERS (THE code )SECTIONINTRODUCTION AGENERAL PRINCIPLES BDEFINITIONSCTHE APPROACH, ANNOUNCEMENTS AND INDEPENDENT ADVICE DRESTRICTIONS ON DEALINGS ETHE MANDATORY OFFER AND ITS TERMS FTHE VOLUNTARY OFFER AND ITS TERMS GPROVISIONS APPLICABLE TO ALL OFFERS HCONDUCT DURING THE OFFER IDOCUMENTS FROM THE OFFEROR AND THE OFFEREE BOARDJPROFIT FORECASTS AND QUANTIFIED FINANCIAL BENEFITS STATEMENTS KASSET VALUATIONS LDISTRIBUTION OF DOCUMENTATION DURING AN OFFER MOFFER TIMETABLE AND REVISION NRESTRICTIONS FOLLOWING OFFERS OPARTIAL OFFERS PREDEMPTION OR PURCHASE BY A COMPANY OF ITS OWN SECURITIES QDEALINGS BY CONNECTED EXEMPT PRINCIPAL TRADERSRWHITEWASH GUIDANCE NOTE APPENDIX

5 1 FORMULA OFFERS GUIDANCE NOTE APPENDIX 2 DIRECTORS RESPONSIBILITIES AND CONFLICTS OF INTEREST GUIDANCE NOTE APPENDIX 3 RECEIVING AGENTS code OF PRACTICE APPENDIX 4 TENDER OFFERS APPENDIX 5 BID DOCUMENTATION RULES FOR THE PURPOSES OF SECTION 953 OF THE COMPANIES ACT 2006 APPENDIX 6 SCHEMES OF ARRANGEMENT APPENDIX 7 AUCTION PROCEDURE FOR THE RESOLUTION OF COMPETITIVE SITUATIONS APPENDIX 8 HEARINGS COMMITTEE RULES OF PROCEDURE APPENDIX 9 DOCUMENT CHARGES CITY code ON takeovers ANDMERGERSC ontentspageINTRODUCTION1 OVERVIEW A12 THE code A13 COMPANIES, TRANSACTIONS AND PERSONS SUBJECT TO THE code A34 THE PANEL AND ITS COMMITTEES A75 THE EXECUTIVE A106 INTERPRETING THE code A107 RULES OF PROCEDURE OF THE HEARINGS COMMITTEE A128 Takeover APPEAL BOARD A129 PROVIDING INFORMATION AND ASSISTANCE TO THE PANEL AND THE PANEL S POWERS TO REQUIRE DOCUMENTS AND INFORMATION A1210 ENFORCING THE code A1311 DISCIPLINARY POWERS A1512 CO-OPERATION AND INFORMATION SHARING A1613 FEES AND CHARGES A1714 ISLE OF MAN A1715 JERSEY A1816 GUERNSEY A18 GENERAL

6 PRINCIPLES B1 DEFINITIONS D. THE APPROACH, ANNOUNCEMENTS AND INDEPENDENT ADVICERULE 1. THE APPROACH D1 RULE 2. SECRECY BEFORE ANNOUNCEMENTS; THE TIMING AND CONTENTS OF ANNOUNCEMENTS D2 Secrecy D2 When an announcement is required D2 Notes on Rule 1. Panel to be consulted D3 2. Clear statements D4 3. Rumour and speculation during an offer period D4 4. When a dispensation may be granted D4 Responsibilities of offerors and the offeree company D5 The announcement of a possible offer D5 Notes on Rule 1.

7 Consequences of subsequent acquisitions of interests in shares D6 2. Indemnity and other dealing arrangements D6 3. Formal sale process D6 Terms and pre-conditions in possible offer announcements D6 Notes on Rule 1. Reservation of the right to set a statement aside or to vary the form and/or mix of consideration D8 2. Duration of restriction D8 3. Statements by the offeree company D8 4. Dividends D9 Timing following a possible offer announcement D9 Notes on Rule 1. Deadline extensions D11 2. Formal sale process D11 The announcement of a firm intention to make an offer D11 Notes on Rule 1.

8 Intentions of the offeror with regard to the business, employees and pension scheme(s) D13 2. Conditions and pre-conditions D14 3. Persons acting in concert with the offeror D14 4. Reservations to a previous statement in relation to the terms of a possible offer D14 Statements of intention not to make an offer D15 Notes on Rule 1. Prior consultation D15 2. Setting aside a statement to which Rule applies D16 3. Concert parties D16 4. Media reports D17 5. Significant asset purchases D17 CONTENTS Announcement of numbers of relevant securities in issue D18 Notes on Rule 1.

9 Options to subscribe D18 2. Treasury shares D18 Irrevocable commitments and letters of intent D18 Notes on Rule 1. Disclosure in firm offer announcement D19 2. Method of disclosure D19 3. Contents of announcement D20 4. Letters of intent procured prior to the commencement of the offer period D20 Distribution of announcements to shareholders, employee representatives (or employees) and pension scheme trustees D20 Notes on Rule 1. Where a circular summarising an announcement made under Rule is sent D22 2. Shareholders, persons with information rights and employee representatives (or employees) outside the EEA D22 3.

10 Holders of convertible securities, options or subscription rights D22 RULE 3. INDEPENDENT ADVICE D23 Board of the offeree company D23 Notes on Rule 1. Management buy-outs and offers by controllers D23 2. When there is uncertainty about financial information D23 3. Where the independent adviser is unable to advise whether the financial terms of the offer are fair and reasonable D23 Board of an offeror company D23 Notes on Rule 1. General D24 2.