ExxonMobil Warns Shareholders of Unsolicited Mini-Tender Offer

Strategic Insights -

ExxonMobil Corporation, a major international energy company, has received notice of an unsolicited mini-tender offer by Ponos Industries LLC to purchase up to 1 million shares of ExxonMobil common stock. The offer price of $48 per share is below the current market value, and the offer is subject to numerous conditions. ExxonMobil has issued a press release advising its shareholders not to tender their shares in response to the offer.

Key Takeaways:

  • ExxonMobil has received notice of an unsolicited mini-tender offer by Ponos Industries LLC to purchase up to 1 million shares of ExxonMobil common stock at a price of $48 per share.
  • The offer represents approximately 0.024 percent of the shares outstanding as of April 27, 2020.
  • ExxonMobil has issued a press release advising its shareholders not to tender their shares in response to the offer, citing the offer is at a price below a conditional market price for ExxonMobil's shares and subject to numerous conditions.
  • Ponos has made many similar mini-tender offers for shares of other companies, which may pose risks to investors.
  • Mini-tender offers are subject to fewer disclosures and procedures than larger tender offers, making them potentially more risky for investors.

Statistics:

  • 1 million shares of ExxonMobil common stock are subject to the mini-tender offer, representing approximately 0.024 percent of the shares outstanding as of April 27, 2020.
  • The offer price of $48 per share is below the current market value.
  • The offer is subject to numerous conditions, including the closing price per share exceeding $48 per share on the last day before the offer expires.
  • The offer is currently scheduled to expire at 1 p.m. EST on Friday, Nov. 27, 2020. Ponos may extend the offering period at its discretion.

Sources:

  • ExxonMobil's press release dated July 28, 2020
  • Securities and Exchange Commission (SEC) guidance on mini-tender offers, available at www.sec.gov/reportspubs/investor-publications/investorpubsminitendhtm.html
  • ExxonMobil's website, exxonmobil.com
  • SEC's letter regarding broker-dealer mini-tender offer dissemination and disclosure, available at www.sec.gov/divisions/marketreg/minitenders/sia072401.htm