Great-West Lifeco cautions investors regarding Obatan LLC's second mini-tender offer for shares in Ireland
TSX: GWO
Lifeco does not endorse Obatan's unsolicited offer, has no association with Obatan or its offer, and does not recommend acceptance of the offer. Obatan's offer has been made at a price below the current market price for the shares.
Mini-tender offers such as Obatan's seek less than 5% of a class of outstanding shares and so avoid many of the investor protections like disclosure and procedural protections applicable to most bids under Canadian law. Securities regulators have expressed serious concerns about mini-tender offers, including the possibility that investors might tender to such offers without understanding the offer price relative to the actual market price of their securities. The
Lifeco urges shareholders to obtain current market quotes for their shares and to consult with their broker or financial advisor in considering Obatan's offer. According to Obatan's offer documents, shareholder tenders are irrevocable and cannot be withdrawn once lodged. Further, tendering shareholders do not have the option to tender only a portion of their shares. Obatan has reserved the right to purchase an additional amount of shares over and above 50,000 common shares, such additional amount not to exceed 2% of the outstanding common shares.
To read more about the risks of mini-tender offers, please review the Canadian Securities Administrators' comments at https://docs.mbsecurities.ca/msc/notices/en/item/103061/index.do.
Lifeco requests that a copy of this news release be included in any distribution of materials relating to Obatan's mini-tender offer for Lifeco common shares.
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