A type of tender offer that represents an active act of solicitation that is made by a company (as a bidder or offeror) to purchase a major part of its own securities. Solicitation is typically conducted by means of a tender offer to acquire its common stock or debts (e.g., bonds issued by the company).
An issuer tender offer is a way of acquiring the stock of a public company by the same company. This involves an offer to purchase some or all of a company’s publicly traded stock directly from the company’s stockholders for a monetary amount (cash), the bidder’s stock (in an exchange offer), or a combination of both cash and stock. By an issuer tender offer, a company can buy back its own stock or securities to meet certain business requirements or as a defensive tactic against a potential takeover.
This tender offer is also known as a self-tender.
Comments