Updated
Updated · PR Newswire · Jul 3
Sun Life Warns on Ocehan's 100,000-Share Mini-Tender at Nearly 25% Discount
Updated
Updated · PR Newswire · Jul 3

Sun Life Warns on Ocehan's 100,000-Share Mini-Tender at Nearly 25% Discount

3 articles · Updated · PR Newswire · Jul 3

Summary

  • Sun Life said Ocehan LLC's unsolicited offer for up to 100,000 common shares is priced well below market and is neither endorsed nor recommended by the insurer.
  • The company said the bid was launched at a 24.95% discount to Sun Life's May 25 TSX close and a 24.38% discount to its May 22 NYSE close.
  • Shareholders are not required to sell, and those who already tendered can withdraw their shares within 21 days under Ocehan's offer documents.
  • Canadian and U.S. regulators have long warned that mini-tender offers can sidestep normal bid rules and catch investors accepting below-market prices without realizing it.

Insights

While Canada tightens takeover rules, is a new SEC order making US investors more vulnerable?
If mini-tender offers are so predatory, why do these regulatory loopholes still exist?