Mandatory Offer

dsam · 1 Mandatory Offer Wed Sep 28, 2011 9:29 pm

dsam

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Please, someone can explain to me, what is mandatory offer ?

windi5 · 2 Re: Mandatory Offer Thu Sep 29, 2011 7:38 am

windi5

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When some one acquired 30% of a certain company, he or she has to make an offer to other shareholders to sell their shares to them, if they are willing to sell. Price would be the highest price them or any related party paid for the particular share during last 3 months. Mandatory means, the party who acquired, is mandatory to make an offer and buy other shareholders shares, according to take overs and merges code. But it's not mandatory to other shareholders to sell at that price. If they are willing to keep the shares or if the market price is higher than the offer price, other shareholders can ignore the offer.

Leo · 3 mandatory offer Thu Sep 29, 2011 8:17 am

Leo

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In most countries, when an acquiring company passes a certain threshold or acquires control of the target, it is required by stock exchange regulation to offer to buy back the shares of all shareholders. Such an offer is called a mandatory offer.