Options After 70% of shareholder tendered their shares Delek now control 76% of the company. The mandatory extension is now in operation and is open until the 3rd May. Under this extension you may tender your shares for C$1.95.
Options
1) Tender your shares under the mandatory extension. Contact your broker and inform them of your wish to tender your shares. You may do this by telephone. Your broker may offer an online option. I would also expect your broker to write to you about the mandatory extension and to request your instruction.
2) Sell in the market. You can still sell your shares as normal in the market but be aware that it may be at a discount to the offer price.
3) Hold on to your shares as a minority shareholder in Ithaca.
4) Any mix of the above.
I expect we’ll see bulletin board comments over the next few days arguing the position for and against taking a minority shareholder position. I have no experience in this area. However, it is my understanding from the various circulars that Delek wish to take full control of Ithaca. If all remaining shareholders tender their shares in the mandatory offer then Delek will have full 100% control. If you believe Delek wish to maintain a public listing then you should ask yourself why they have not put some limit on the tender – perhaps they don’t have that option. With a 76% holding it is likely that Delek will pass the 90% mark during the mandatory extension which would allow them to take full control of Ithaca. I have no idea what the terms of the exchange would be. Perhaps others have experience of this.
If you wish to hold out as a minority shareholder I urge you to use your brain and not your heart.
All the best,
Londoner7