PDSnet Glossary

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Name	synonyms = 1, variations = 2, abbreviations = 3

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Definition

This is an offer to buy some or all of the shares of another company which takes the form of an announcement on the Stock Exchange News Service (SENS) or a letter sent to the target company. The offer will usually include the price that is being offered in cash and in the shares of the acquiring company. The offer is made to the shareholders of the target company and is open for a defined period of time. The directors of the target company will then usually obtain an independent assessment of the offer to determine whether it is fair and they will express either their support or opposition to the offer and advise shareholders accordingly. For example, on 29th November 2021 Implats (IMP) made an offer for the remaining ordinary shares of RB Plats which it did not already hold. The offer was for R150 in cash and 0,3 Implats shares per RB Plats shares. The value of the Implat's shares offered was R60 based on a 3-day volume weighted average price (VWAP). The board of RB Plats then appointed an independent expert board to evaluate the offer and communicate its finding to shareholders.

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