While controversial, mini-tenders are permitted in the Canadian markets. This blog provides a brief overview of mini-tenders and summarizes two recent examples, which demonstrate the considerations surrounding whether or not a mini-tender will succeed.
What is a mini-tender?
A mini-tender is an unsolicited and widely disseminated offer to purchase less than 20% of the outstanding voting or equity shares of a public company. It is not subject to the disclosure and procedural protections of formal take-over bid regulation. In Canada, mini-tenders are generally made for significantly less than 20% of outstanding shares at a substantial discount to market. The Canadian … Continue Reading