Tesla Inc - Mini-Tender Offer5 Oct 2020 14:09
As you hold Tesla shares, we’re obliged to let you know that Ponos Industries LLC has announced its intention to buy up to 500,000 shares of Tesla Inc, by way of a mini-tender. This is when a person or company tries to buy less than 5% of another company at a fixed price.
But we want to alert you to a warning from the U.S Securities & Exchange Commission (SEC).
Mini-tenders such as this have been increasingly used to catch investors off guard.
“Many investors who hear about mini-tender offers surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers. But they later learn that they cannot withdraw from the offer and may end up selling their securities at below-market prices.”
You can read the full SEC warning at www.sec.gov/investor/pubs/minitend.htm.
If you take part in the tender offer, the price you would agree to sell your shares to Ponos Industries is USD420.00 per share.
But Ponos will only go ahead if the Tesla share price is above USD420.00 when it completes. And they can keep the offer running indefinitely and you can’t cancel your instruction. So, if you take part in the offer Ponos could hold your instruction indefinitely.