Tender offer10 Jul 2019 14:15
So does anyone actually understand the tender offer? I have 4 days to make up my mind, and I have no idea what to do...
I have 3 options... Sell at the 'strike price' (which is determined after the fact, by WTB)/ Sell at VWAP average price + 1-4% extra/ do nothing and keep shares.
Can someone help me with the following?
1) What is the difference between the 'strike price' and the VWAP price?
2) Why would anyone pick for example, VWAP + 1% rather than VWAP+4%? Surely everyone would want as much bonus as possible so I don't understand why you get the option? If you pick VWAP+4% are you less likely to achieve the sale of your shares?
3) Any thoughts on what people are going to do? I really have no idea on what the best strategy is, but i'm leaning towards selling as i'm not a fan of how the whole sale to coca-cola has been handled for shareholders, including this tender.
Also, annoyingly my broker has sent an update after the original tender stating that the option to tender only part of your holding has been removed, it is now tender all your shares, or none. Would have liked to go 50/50.