Tender Offer

A tender offer is a public and transparent process whereby existing shareholders of a publicly traded company are invited to tender (sell) their shares to a prospective acquirer. Shareholders are “offered” the opportunity to sell some or all of their shares at a specific price during a pre-determined time-frame. Tender offers will usually be subject to pre-established minimum and maximum share acceptance limits and may or may not be endorsed by the board of directors of the subject company.

“Edaa” Tender Offer Service assists an acquirer to purchase a controlling stake of a company and enables shareholders to surrender their shares in the company that is subject to a takeover. The service electronically facilitates the acquisition and allows the target company shareholders’ the opportunity to electronically accept or reject the offer via their Tadawulaty accounts.

Tender offers usually require the acquirer to communicate with large number of shareholders to secure their acceptance, which limited the use of tender offers as a viable acquisition mean. Tadawulaty has solved this issue by providing a direct mean of communication with company’s shareholders through mobile short messages (SMS), emails, and their Tadawulaty accounts.

A tender offer is completed in phases. Initially, the acquirer secures all approvals required for the acquisition. Then, Tadawulaty informs the target company shareholders about the offer through the different means of communication. Shareholders can accept or reject the offer through their Tadawulaty accounts. Finally, if the offer succeeds, the system transfers share ownership to the acquirer, and informs all concerned shareholders about the results.

For more information, please contact our Customer Service team on email: cc@edaa.sa