Tender offer for a share, help please what to do

happyhero

Hi can anybody guide me please, what you would do or similar, I have some shares called EVRAZ PLC and i have received paperwork for a Tender offer, I hate these things, they always seem to be written in an over complicated way so that I end up not understanding what they are offering.

I don't have a lot so I am not too worried, ie I dont feel the need to go and get anymore advice than I can get here, plus time is running out for the response they require, so if anyone here can help me I would be really grateful.

It basically says:-

Evraz Plc has announced details of a Tender Offer. You have two options to consider before our noon Thursday 16th April 2015 deadline.

The Tender Offer enables holders to tender up to 8.03% of their Shares held. Each Shareholder therefore has an entitlement to tender (i.e. elect to sell) up to 8.03% of their Shareholding as at close of business on 17th April 2015. The Tender Offer Price has been calculated at US$3.10 per Share. If you tender Shares it is not possible to retain the resulting payment in US Dollars and it must be credited to your Account in Sterling. You can elect to receive the payment directly in Sterling from the Company, the ‘Currency Alternative’ (further details can be found in the Appendix). Unless you elect for the Currency Alternative the proceeds will be converted to Sterling based on the prevailing exchange rate at the time of payment by Hargreaves Lansdown, subject to our standard currency service fees. Once converted, the Sterling proceeds will be credited to your Vantage Stocks & Shares ISA.

What are my options?

Option 1 – Tender a number of Ordinary Shares. If you wish to tender a number of Shares, up to 8.03% of your Shareholding as at close of business on 17th April 2015 ( 28 Shares based on your current holding, your actual entitlement will be based on your holding as at close of business on 17th April 2015), please give us your instruction by noon Thursday 16th April 2015, at which point any tendered Shares will be removed from your portfolio. Should you wish to elect for the ‘Currency Alternative’ please clearly state this in any instruction given.

Option 2 – Take no action. Shareholders are not obliged to tender any number of Shares. If you do not return an instruction no Shares will be tendered on your behalf and the number of Shares you hold will remain unchanged.

Can anyone decipher that lot and say what you would do, ie the most popular choice would do, I don't want to miss out on something good if available by doing nothing but then again if its hardly worth it then that is what I will do.

Any info/help/guidance appreciated.

P.S I have about £600 worth of them and their current price is about £2.07 each share

http://www.hl.co.uk/shares/shares-search-results/e/evraz-plc-ord-usd1

TakeCareOfThePennies_2

happyhero,

Its quite simple. They want to buy back some of your shares.

You are being given two options :

1) Say yes and be paid a very slight premium (3.10USD, so roughly 2.12GBP)

2) Say no (by doing nothing) and stay as you are.

Whether you say yes is entirely up to you. The decision rests on what you reckon the future prospects for EVRAZ PLC and indeed whether you will miss "up to 8.03% of your Shareholding".

bowlhead99

They have some spare money and are offering to return $375m to investors. http://www.investegate.co.uk/evraz-plc/rns/proposed-return-of-up-to-us-375m-to-shareholders/201504010701190936J/

To make it tempting and show confidence in the strength of the company, the tender price was set at approx 10% above the share price before the day they did their results announcement and announced the tender. However, the market price promptly shot up a few percent and its current trading price is roughly around the same level as they're offering to pay,

It does give you the opportunity to cash in a part of your holding without paying dealing fees. So if you've been holding for a year and seen the shares almost triple in price from 80p, or almost quadruple from the low of 54p in March '14 that might be quite welcome. If you bought recently and do want all your £600 of shares based on your view of the company's prospects, there's no point tendering any.

If you do tender any: as they're paying in dollars by default, and HL don't offer dollar cash accounts, HL will stiff you with their exchange rate before you get the pounds back in your hand which will cost you some fraction of what you would have otherwise got, against that day's prevailing dollar exchange rate; alternatively you can simply elect for the 'currency alternative' where the company will simply send you Sterling at their own worked-out rate determined in advance (details of which, according to the text you quoted, can be found in the Appendix of what they published)

As TCOTP says, it depends on whether you would prefer to have the shares than the money. If I had a decent amount of shares which I'd held through a large gain, I would take advantage of cashing in 8% of the holding for free. If the amount I could tender was only £50 and no real premium to the current share price and I wasn't sitting on much of a gain anyway, or had a big loss but really wanted to stay invested because I was happy it was finally going up again, I would probably just let it ride.

As an aside, do you really find it difficult to 'decipher that lot'? Assuming you've read the annual results which came out at the beginning of this month, and the tender proposal, and the straightforward note which HL sent, I'm not sure where you're getting stuck. If you're not reading or understanding the financial reports and the documentation, are you sure that holding shares in a single company whose price moves daily, is the right thing for you to be doing?

I see the price is actually up 280% from its 54p low 13 months ago, which was about 90% down from its high a couple of years below that. So, not a share for 'widows and orphans'. While £600 or £550 is not a lot of money, if you don't really know what's going on, perhaps step back and exit completely rather than hold on to the rollercoaster to see what happens next.

TCA

As a shareholder I just received an email regarding the tender offer for (100% of) shares in BlackRock Frontiers Investment Trust. I lost the will to live not far into the 64 page pdf below. It seems to have been pre-scheduled and I see the offer is for NAV less costs, but I think I'm struggling to read between the lines as to the 'why?'. Specifically given it's a 100% tender and the possibility of discontinuance is mentioned, yet there's mention of expanding the investment strategy and a C share class issue. Any other shareholders out there (or Philapdelphia lawyers) care to shed any light in layman's terms?

"At the time of the Company’s launch in December 2010, the Company stated that before the Company’s fifth annual general meeting, the Board would formulate and submit to Shareholders proposals (which may constitute a tender offer or other method of distribution) to provide Shareholders with an opportunity to realise the value of the Ordinary Shares at the applicable Net Asset Value per Ordinary Share less costs. The Company’s fifth annual general meeting is due to be held on 10 February 2016."

https://www.blackrock.com/uk/individual/literature/shareholder-letters/blackrock-frontier-investment-trust-tender-offer-circular-shareholder-letter-en-uk.pdf