RE:something to think about if the deal is accepted.Ferret, thank you for your post. The Total bid sequence illustrates the operation of the mandatory extension.
On the 9th December 2016 Total Energy initiated a hostile offer for Savanna with a minimum tender level of 66 2/3 % of common shares. The deadline for Total’s initial offer was the 24th March. The 105 days between the offer date and the closing deadline is in accordance with Canadian law, allowing the target company 105 days to defend against the bid – a hostile takeover. Canadian law allows a minimum 35 days where the bid has the support of the target’s board – this is the case in the Ithaca bid.
On the 1st March Total increased their offer.
On the 13th March Total waived the condition requiring 66 2/3% of shares to be tendered, falling back to the ‘statutory minimum condition”, namely 50% of outstanding shares not controlled by Total – Delek’s target requirement for Ithaca tenders.
On 25th March, the day after the deadline, Total announced the take up of the 51.6% of shares tendered to the offer – a successful bid (just). (So united, small shareholders could make a difference in the Delek bid)
Also on 25th March Total announced an extension to the tender until 7th April. This is the mandatory extension which allows all remaining shareholders to tender their shares.
The news release Ferret links to is a warning to minority shareholders, dated 3rd April, advising them that the offer may not be extended beyond the new expiry date of 7thApril.
To be crystal clear, if Delek announce success in their bid on the 21st April, or possibly a later date if the bid is raised, then they will also announce an extension to tender of at least 10 days. There is no reason for shareholders to remain minority shareholders unless they want it. I don’t want to be a minority shareholder but I do want to maximise my investment in Ithaca so I will wait until Delek make an announcement on either raising their bid or on a successful tender response before I take any action.
Londoner7