Manulife cautions investors regarding Obatan LLC offer for shares

Rhea-AI Summary

Manulife has alerted shareholders about an unsolicited mini-tender offer from Obatan LLC to purchase up to 500,000 common shares at USD$14.40 each. This price reflects a 27.22% and 27.27% discount compared to the closing prices on January 24, 2022, and a 31.40% and 31.46% discount from February 2, 2022. Manulife does not endorse this offer, stressing that mini-tender offers may not reflect market prices adequately. Shareholders are advised to consult their investment advisors regarding this offer.

Positive

• None.

Negative

• Unsanctioned mini-tender offer at a 27.22% and 31.40% discount to recent market prices.
• Potential risk of investors being caught off guard by the low offer price.

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

TORONTO, Feb. 3, 2022 /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$14.40 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 27.22% and 27.27%, respectively, below the closing prices of Manulife common shares on the TSX and NYSE on January 24, 2022, the last trading day before the mini-tender offer was commenced, and a discount of 31.40% and 31.46%, respectively, below the closing prices on the TSX and NYSE on February 2, 2022.

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 March 17, 2022 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@tmx.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 provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our global wealth and asset management segment, we serve 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 September 30, 2021, we had CAD$1.4 trillion (US$1.1 trillion) in assets under management and administration, and in the previous 12 months we made CAD$31.6 billion in payments to our customers.

Our principal operations are in Asia and 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. Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com

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SOURCE Manulife Financial Corporation

FAQ

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

Obatan LLC has made an unsolicited mini-tender offer to purchase up to 500,000 Manulife common shares at USD$14.40 each.

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

No, Manulife is not associated with Obatan and does not endorse this mini-tender offer.

What discounts does the mini-tender offer represent compared to market prices?

The offer represents discounts of 27.22% and 31.40% compared to the recent closing prices of Manulife shares.

What should shareholders do in response to the mini-tender offer?

Shareholders should review the offer documents and consult their investment advisors before making any decisions.