(Alliance News) - AstraZeneca PLC on Monday advised investors to reject a "mini-tender" offer by TRC Capital Investment.
The FTSE 100-constituent said that Toronto-based investor TRC has made an "unsolicited" offer for 2.0 million of Astra's American Depositary Shares. This represents a "mini" stake of around 0.1% in the pharmaceutical firm.
TRC is offering USD57.88 per American Depositary Share, or 4.5% below the American Depositary Share price on October 8, the day prior to the offer.
"AstraZeneca does not in any way recommend or endorse the TRC Capital offer and recommends that shareholders reject the offer because the offer price is below the market price for [American Depositary Shares] immediately prior to this announcement," the pharmaceutical company said.
The company added that, under the terms of its tender offer, TRC retained the right to delay payment for the American Depositary Shares, withdraw its offer or amend it in any respect.
AstraZeneca also noted that TRC could decline to purchase tendered shares if any one of numerous conditions is not satisfied.
Shareholders who have already tendered their American Depositary Shares can withdraw their shares before midday on November 9, the company counselled.
Shares in AstraZeneca were trading down 0.6% at 8,742.00 pence each in London on Monday morning.
By Scarlett Butler; scarlettbutler@alliancenews.com
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Astrazeneca (AZN)