A tender offer is an offer to buy a portion or all of the shares of a company from its shareholders. Taking the tender offer is equivalent to SELLING your shares at the fixed price stated in the offer.
Example:
Company A would has a Tender Offer in which they would like to buy your shares at P1.00 per share.
You have three (3) options to this offer:
- Option 1: Accept - Take the tender offer (preferably if tender offer price is higher than the market price)
- Option 2: Decline - Decline the offer and keep your shares (if you wish to hold on to your shares*)
- Option 3: Trade it in the market - Sell your shares at the market (preferably if the market price is higher than the tender offer price)
*Important Note: Some companies have intentions to be delisted from the Philippine Stock Exchange (PSE). They can also be delisted if the public float (shares owned by the public) becomes less than 10% after a tender offer.
A delisted company may not trade its shares in the PSE anymore and your scripless/electronic shares will have to be converted into a physical stock certificate that the shareholder would have to keep personally. This would require document submission and payment of fees. A delisted stock certificate may be difficult to sell or convert back to cash as one would have to do it through the stock transfer office and would have to find their own buyers.
