Category: Odd Lot Tender
Current Price: $30.44 as of 11/29/21
Expected Price: $31.50 per share
Max Size (for odd lot): 99 shares
Expected Timing: December 6, 2021
Profit Potential: $104.94 as of 11/29/21
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BrightSphere is tendering for roughly 40% of shares outstanding at an above market price. Odd lot holders are also not subject to proration, which means that 100% of shares are cashed out if you hold 99 or fewer shares and participate in the tender. The resulting potential return is over 3% in just a week. Since the tender date is so close, you would need to make sure you get your instructions to your broker quickly in order to participate in this tender.
The major risk to the trade is the unlikely scenario where the tender is canceled and shares are not cashed out at the set price.
Press Release: https://www.businesswire.com/news/home/20211104005613/en/BrightSphere-Announces-Fixed-Price-Tender-Offer & https://www.streetinsider.com/SEC+Filings/Form+SC+TO-I+BrightSphere+Investment+Filed+by%3A+BrightSphere+Investment+Group+Inc./19159323.html
Most Important Excerpt: BrightSphere Investment Group Inc. (NYSE: BSIG) today announced its plan to launch a fixed price tender offer to purchase up to 33,300,000 shares of its common stock (the “Shares”) at a purchase price of $31.50 per share (the “Purchase Price”). On November 3, 2021, the closing price of BrightSphere’s common stock was $30.13 per share. The tender offer is expected to commence today and to expire at 5:00 p.m., New York City Time, on December 6, 2021, unless the offer is extended.
Under the terms of the tender offer, stockholders who tender their shares receive a fixed price of $31.50 for each share, subject to proration if the tender offer is oversubscribed. If the tender offer is fully subscribed, BrightSphere will have purchased approximately 41.7% of outstanding Shares as of October 29, 2021.
Upon the terms and subject to the conditions of the Offer, promptly after the Expiration Date, we will pay the Purchase Price for Shares properly tendered and not properly withdrawn from the Offer. Upon the terms and subject to the conditions of the Offer, if up to 33,300,000 Shares are properly tendered and not properly withdrawn, we will buy all Shares properly tendered and not properly withdrawn. We may not purchase all of the Shares tendered if more than 33,300,000 Shares are properly tendered and not properly withdrawn, because of proration, “Odd Lot” priority and conditional tender provisions described in this Offer to Purchase. Shares not purchased in the Offer will be returned to the tendering stockholders promptly after the Expiration Date. In accordance with the rules of the Securities and Exchange Commission (the “SEC”), we may increase the number of Shares accepted for payment in the Offer by no more than 2% of the outstanding Shares without extending the Offer.
Teeny Trader 