Summary
Amphenol Corporation (APH) has filed an 8-K report on March 22, 2017, to inform its stockholders about an unsolicited mini-tender offer from TRC Capital Corporation. TRC Capital is attempting to purchase up to 2 million shares of Amphenol's common stock at $68.25 per share. This offer price represents a discount of 4.33% compared to Amphenol's closing stock price on March 17, 2017. Amphenol's management explicitly does not endorse this mini-tender offer and strongly recommends that its stockholders reject the offer and not tender their shares. The company is not affiliated with TRC Capital or its offer. Stockholders who have already tendered their shares have the right to withdraw them before the specified deadline of April 19, 2017.
Key Highlights
- 1Amphenol Corporation is warning investors about an unsolicited mini-tender offer from TRC Capital Corporation.
- 2TRC Capital is offering to buy up to 2 million shares of APH common stock.
- 3The offer price of $68.25 per share is below the market price, specifically 4.33% less than the closing price on March 17, 2017.
- 4Amphenol's Board of Directors does not recommend stockholders accept the offer.
- 5The company urges stockholders to reject the mini-tender offer and not tender their shares.
- 6Amphenol is not affiliated with TRC Capital or its offer.
- 7Stockholders who have already tendered shares can withdraw them before April 19, 2017.
Frequently Asked Questions
A mini-tender offer is a type of tender offer where a bidder seeks to purchase less than 5% of a company's outstanding shares. These offers often present the shares at a discount to the current market price, aiming to attract investors who may not be closely monitoring the market or understanding the implications of the discount.
Amphenol is advising rejection because the offer price of $68.25 per share is below the current market trading price of its stock, representing a discount. The company believes this offer is not in the best interest of its stockholders and is an attempt to take advantage of market fluctuations or lack of close attention from some investors.
Yes, stockholders can still sell their shares through their broker on the stock exchange at the prevailing market price, which is likely higher than the discounted price offered by TRC Capital. The mini-tender offer is an alternative, unsolicited offer that Amphenol recommends investors avoid.
If you have already tendered your shares in response to TRC Capital's mini-tender offer, you have the right to withdraw your tendered shares. Amphenol's press release states that shares can be withdrawn at any time prior to 12:01 a.m. New York City time on April 19, 2017, according to TRC Capital's offering documents. You should consult those documents for specific withdrawal instructions.