Q: If an issuer’s subsidiary acquires shares in itself from interests outside the consolidated group, is that acquisition subject to the “step-by-step” provisions in Part 8 of NI 51-102?
A: Yes, the acquisition by the subsidiary of shares in itself increases the issuer’s proportionate interest in the subsidiary and so should be considered a step acquisition by the issuer. The provisions in section 8.11 for step-by-step acquisitions apply if the acquisition is a significant acquisition. [Added June 18, 2004]