Manulife cautions investors regarding Obatan LLC offer for shares

Rhea-AI Summary

Manulife warns shareholders against an unsolicited mini-tender offer by Obatan LLC to purchase up to 500,000 common shares at USD$12.00 each, a 37.30% discount to recent closing prices. The company emphasizes that it is not affiliated with Obatan and does not endorse the offer. Manulife advises shareholders to compare the offer price with current market prices and to consult with investment advisors. The mini-tender offer is under scrutiny due to concerns about investors potentially accepting below-market valuations.

Positive

• None.

Negative

• Offer price of USD$12.00 is 37.30% below market value.
• The mini-tender offer raises concerns about investor misunderstanding regarding share value.

C$ unless otherwise stated                                            TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Aug. 16, 2021 /PRNewswire/ - Manulife has been notified of an unsolicited mini-tender offer made by Obatan LLC (Obatan) to purchase up to 500,000 Manulife common shares, or approximately 0.026% of the common shares outstanding, at a price of USD$12.00 per share.

Manulife is in no way associated with Obatan and does not recommend or endorse acceptance of this unsolicited offer.

Manulife cautions shareholders that the mini-tender offer has been made at a price below the current market price for Manulife shares. The offer represents a discount of 37.30% and 37.37%, respectively, below the closing prices of Manulife common shares on the TSX and NYSE on August 3, 2021, the last trading day before the mini-tender offer was commenced, and a discount of 41.02% and 41.03%, respectively, below the closing prices on the TSX and NYSE on August 13, 2021.

Mini-tender offers are designed to seek less than 5% of a company's outstanding shares, avoiding disclosure and procedural requirements applicable to most bids under Canadian and U.S. securities regulations. The Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) have expressed serious concerns about mini-tender offers, including the possibility that investors might tender to such offers without understanding the offer price relative to the actual market price of their securities.

The SEC states that "bidders make mini-tender offers at below-market prices, hoping that they will catch investors off guard if the investors do not compare the offer price to the current market price."

According to Obatan's offer documents, Manulife shareholders who have already tendered their shares can withdraw their shares at any time before 5:00 P.M. New York City Time on October 6, 2021 by following the procedures described in the offer documents.

Shareholders should carefully review the Obatan offer documents and current market price for Manulife shares, and consult their investment advisors regarding any offer they may receive and review with their advisors all options for their investment in Manulife shares.

Manulife has stock transfer agents providing shareholder services in Canada, the United States, Hong Kong and the Philippines. These local agents provide services directly to our registered shareholders and can provide information on share account management, direct deposit of dividends, dividend reinvestment and share purchase plans. Please email manulifeinquiries@astfinancial.com for more information.

Manulife requests that a copy of this news release be included in any distribution of materials relating to Obatan's mini-tender offer for Manulife common shares.

About Manulife
Manulife Financial Corporation is a leading international financial services provider that helps people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we operate as Manulife across our offices in Canada, Asia, and Europe, and primarily as John Hancock in the United States. We provide financial advice, insurance, and our global wealth and asset management segment, Manulife Investment Management, serves individuals, institutions and retirement plan members worldwide. At the end of 2020, we had more than 37,000 employees, over 118,000 agents, and thousands of distribution partners, serving over 30 million customers. As of June 30, 2021, we had CAD$1.3 trillion (US$1.1 trillion) in assets under management and administration, and in the previous 12 months we made $31.3 billion in payments to our customers. Our principal operations are in Asia, Canada and the United States where we have served customers for more than 155 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong.

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SOURCE Manulife Financial Corporation

FAQ

What is the mini-tender offer made by Obatan LLC for MFC shares?

Obatan LLC has made an unsolicited mini-tender offer to purchase 500,000 shares of MFC at USD$12.00 each, significantly below the market price.

How much of a discount does Obatan's offer represent on MFC shares?

The offer represents a discount of 37.30% compared to recent closing prices on the TSX and NYSE.

Is Manulife associated with Obatan's mini-tender offer?

No, Manulife is not associated with Obatan and does not recommend acceptance of the unsolicited offer.

What should MFC shareholders do regarding Obatan's offer?

Shareholders should carefully review the offer documents and current market prices and consult their investment advisors.

What is the deadline for withdrawing shares tendered to Obatan's offer?

Shareholders can withdraw their shares until 5:00 P.M. New York City Time on October 6, 2021.