DuPont has been notified of an unsolicited “mini-tender” offer. The strategy is used by firms as a way to pry loose stock from shareholders at a below-market price.
According to DuPont, TRC Capital Investment Corporation to purchase up to two million shares, or approximately 0.27 percent of outstanding shares, of DuPont’s common stock at $64.75 per share. As of Thursday, DuPont shares were trading at about $65 a share.
DuPont does not endorse TRC Capital’s offer and recommends that DuPont stockholders reject the offer and not tender their shares in response to TRC Capital’s unsolicited mini-tender offer.
DuPont shareholders have been through a complex merger, spinoff process that first saw shares of DowDuPont, with later spinoffs of stock into Corteva Agriscience, DuPont and Dow.
This mini-tender offer is subject to conditions, including TRC Capital’s ability to obtain financing.
TRC Capital made similar, unsolicited mini-tender offers for shares of other publicly traded companies. Mini-tender offers are designed to seek to acquire less than five percent of a company’s outstanding shares, thereby avoiding many disclosure and procedural requirements of the Securities and Exchange Commission that apply to tender offers for more than 5 percent of a company’s outstanding shares. As a result, mini-tender offers do not provide investors with the same level of protection provided by larger tender offers under United States securities laws, DuPont noted
The SEC’s guidance to investors on mini-tender offers is available at www.sec.gov/investor/pubs/minitend.htm. This alert advises that mini-tender offers “have been increasingly used to catch investors off guard, DuPont noted.
Many investors who hear about mini-tender offers surrender their securities without investigating the offer, assuming that the price offered includes the premium usually present in larger, traditional tender offers. But they later learn that they cannot withdraw from the offer and may end up selling their securities at below-market prices.
DuPont advises investors to obtain current market quotations for their shares, review the conditions to the offer and consult with their broker or financial adviser .
DuPont stockholders who have already tendered are advised that they may withdraw their shares by providing the written notice described in the TRC Capital offering documents prior to the expiration of the offer, which is currently scheduled at 12:01 a.m. New York City time on Wednesday, Dec. 18.
DuPont encourages brokers and dealers, as well as other market participants, to review the SEC’s letter regarding broker-dealer mini-tender offer dissemination and disclosures at www.sec.gov/divisions/marketreg/minitenders/sia072401.htm and the NASD Notice to Members 99-53 issued in July 1999, regarding guidance to members forwarding mini-tender offers to their customers, which can be found at http://www.finra.org/web/groups/industry/@ip/@reg/@notice/documents/notices/p004221.pdf.
DuPont requests that a copy of this press release be included with all distributions of materials relating to TRC Capital’s offer.
DuPont (NYSE: DD) is a global innovation leader with technology-based materials, ingredients and solutions that help transform industries and everyday life. Our employees apply diverse science and expertise to help customers advance their best ideas and deliver essential innovations in key markets including electronics, transportation, construction, water, health and wellness, food and worker safety. More information can be found at www.dupont.com.