RE:be very careful if you decide to tender COS shares So confusing.
1. SU could "take up" some tendered shares before the expiry date
2. Then, if the deal does not go through and COS stays independent, does the original owner have COS or SU shares?
So much fine print here.
forecast123 wrote: I phoned D.F. King verifying some understanding from the words on the 90 pages Offer to Purchase document: 1. The doc wrote "if the conditions of the offer are not satisfied or waived by the Offeror, the Offeror will not be obligated to take up, accept for pyamen or pay for any shares tendered"... So if conditions are not met (say reaching 2/3 level), SU is not obligated to take up shares, but is SU allowed to take up shares tendered to-date ? The answer is YES... 2. The document wrote "any shares tendered in acceptance of the offer maybe withdrawn by shareholder at any time before the shares have been taken up..." I then asked can SU take up tendered shares before expiry date. The answer is YES... Oow ! This is huge risk tendering shares early because SU can take up shares right after you tender and before expiry date, so you run the risk can't w/d your shares.... Lesson learnt: Even if you want to tender your COS shares, hold onto your shares with you as long as possible before tendering... Bear in mind that SU's SP has been plummeting and many are questioning what 0.25 SU meant and whether SU shares are risky... It is beneficial to watch SU SP till a few days before Jan 27 before considering any tender moves.