A “mini-tender” offer is a bid to purchase a small number of shares from shareholders at a price that is often below the current market value on the date the offer is made.
Recently, some holders of demutualized Sun Life shares from the 1990s have reported receiving personalized offer letters to purchase their shares. These letters list the recipient’s exact number of shares and present a buyout price that can be significantly below fair market value — reportedly around 30 percent less.
Inquiries to transfer agents confirm that such offers are generally not prohibited under securities law. However, they are widely viewed as questionable practices because some shareholders may not realize they can typically sell their shares through a local broker or discount brokerage at full market value, subject to standard transaction fees.
These offers tend to resurface periodically, and shareholders should be careful to verify the current market value before acting on any unsolicited bid.
*Any view or opinion expressed in this article are solely those of the Representative and do not necessarily represent those of Harbourfront Wealth Management Inc. The information contained herein was obtained from sources believed to be reliable, however accuracy is not guaranteed. The information transmitted is intended to provide general guidance on matters of interest for the personal use of the viewer, who accepts full responsibility for its use, and is not to be considered a definitive analysis of the law or factual situations of any individual or entity. Any asset classes featured in this article are for illustration purposes only and should not be viewed as a solicitation to buy or sell. Past performance does not necessarily predict future performance, and each asset class has its own risks. As such, this content should not be used as a substitute for consultation with a professional tax or legal expert, or professional advisors. Prior to making any decision or taking any action, you should consult with a licensed professional advisor.
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