Oracle recommends shareholders reject mini-tender offer by Ponos IndustriesChristian Fernsby ▼ | April 6, 2020
Oracle announced that it received notice of an unsolicited mini-tender offer by Ponos Industries to purchase up to 2,000,000 shares of Oracle capital stock, which represents approximately 0.063% of the common shares outstanding, at a price of $50.00 per share in cash.
Offer Oracle received notice of an unsolicited mini-tender offer
Topics: Oracle Ponos Industries
Oracle does not endorse Ponos Industries' unsolicited mini-tender offer and recommends that Oracle shareholders do not tender their shares in the offer.
Ponos Industries has included in the terms of its offer a condition that the closing price of Oracle's shares on the New York Stock Exchange on the last trading day prior to the expiration of the offer must exceed the $50.00 offer price.
As a result, unless Ponos Industries decides to waive this condition, Oracle shareholders who tender their shares in the offer would receive a below market price for Oracle's shares through the tender offer.
The mini-tender offer is subject to numerous other conditions, including that Ponos Industries needs to obtain financing for the offer.
There is no assurance that the conditions to the offer will be satisfied and Oracle shareholders are cautioned that Ponos Industries can extend the offer and delay payment beyond the currently scheduled expiration date of 1:00 p.m. New York City time on April 24, 2020.
Oracle is not associated with Ponos Industries, its mini-tender offer or the mini-tender offer documentation.
Mini-tender offers seek to acquire less than 5 percent of a company's shares outstanding.
Consequently, they can avoid many disclosure and procedural requirements of U.S. Securities and Exchange Commission (SEC) rules that apply to offers for more than 5 percent of a company's shares outstanding. ■