Manulife Cautions Investors Regarding Obatan Offer

Investors should be wary of Obatan LLC's offer for shares, according to Manulife.

Photo Insert: The Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) have highlighted major concerns regarding mini-tender offers.

According to its company press statement, Obatan LLC (Obatan) has made an unsolicited mini-tender offer to purchase up to 500,000 Manulife common shares, or about 0.026 percent of the outstanding common shares, at a price of USD$12.00 per share.

Manulife further declared that it has no affiliation with Obatan and does not condone or encourage accepting this unsolicited offer.

Manulife warns shareholders that the mini-tender offer is below the current market price for the company's shares. The offer represents a discount of 31.37 percent and 31.51 percent, respectively, from Manulife common share closing prices on the TSX and NYSE on May 20, 2022, the last trading day before the mini-tender offer was launched, and a discount of 35.22 percent and 35.24 percent, respectively, below closing prices on the TSX and NYSE on May 31, 2022.

Mini-tender offers are meant to seek fewer than 5% of a company's outstanding shares while evading the disclosure and procedural restrictions that conventional bids face under Canadian and US securities laws.

The Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) have highlighted major concerns regarding mini-tender offers, including the likelihood that investors will tender to such offers without fully understanding the offer price in relation to their securities' actual market price.

According to the U.S. SEC, bidders’ issue mini-tender offers at below-market pricing, seeking to catch investors off guard if they do not compare the offer price to the current market price.

According to Obatan's offer documents, Manulife shareholders who have already tendered their shares can withdraw their shares at any time before 5:00 P.M. New York City Time on July 14, 2022, by following the procedures described in the offer documents.

Shareholders are strongly encouraged to read the Obatan offer materials and review current market price for Manulife shares carefully, consult their investment experts about any offer they may receive, and discuss all options for investing in Manulife shares with their advisors.

Manulife maintains stock transfer agents in Canada, the United States, Hong Kong, and the Philippines who provide shareholder services. These local agents can give information on share account administration, direct deposit of dividends, dividend reinvestment, and share purchase plans to its registered shareholders.

WEEKLY FEATURE : MVP Group Keeps Lights On During Pandemic