Scrip bid is an Australian term used to describe a takeover offer where shares

Share (finance)

A joint stock company divides its capital into units of equal denomination. Each unit is called a share. These units are offered for sale to raise capital. This is termed as issuing shares. A person who buys share/shares of the company is called a shareholder, and by acquiring share or shares in...

 are offered partly or wholly in place of cash

Cash

In common language cash refers to money in the physical form of currency, such as banknotes and coins.In bookkeeping and finance, cash refers to current assets comprising currency or currency equivalents that can be accessed immediately or near-immediately...

. This means that if a take over bid is accepted, shareholders in the target company will receive shares in the new merged entity. This has advantageous tax implications for investors as gains on the sale of shares acquired on or after 19 September 1985 are subject to capital gains tax

Capital gains tax

A capital gains tax is a tax charged on capital gains, the profit realized on the sale of a non-inventory asset that was purchased at a lower price. The most common capital gains are realized from the sale of stocks, bonds, precious metals and property...

. By receiving shares instead of cash the realisation of the capital asset can be delayed to take better advantage of capital loss offsets. Additionally, tax payers are only taxed on half the capital gain if they hold the asset for more than 12 months.