Manulife cautions investors regarding Obatan LLC offer for shares

Rhea-AI Summary

Manulife has received an unsolicited mini-tender offer from Obatan LLC to purchase up to 500,000 shares at USD$12.00 per share, representing a 34.04% discount compared to the closing price on July 14, 2022. Manulife does not endorse this offer and advises shareholders to carefully consider the current market price before making decisions. Mini-tender offers, which seek less than 5% of outstanding shares, often come at below-market prices, leading to potential investor confusion. Shareholders can withdraw their shares before December 31, 2022.

Positive

• None.

Negative

• The mini-tender offer price is 34.04% below the share price on July 14, 2022.
• This offer could mislead investors about the actual value of their shares.

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

TORONTO, July 26, 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$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 34.04% and 34.21%, respectively, below the closing prices of Manulife common shares on the TSX and NYSE on July 14, 2022, the last trading day before the mini-tender offer was commenced, and a discount of 37.67% and 37.71%, respectively, below the closing prices on the TSX and NYSE on July 25, 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 December 31, 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 2021, we had more than 38,000 employees, over 119,000 agents, and thousands of distribution partners, serving over 33 million customers. Our principal operations are in Asia and Canada, and the United States, where we have served customers for more than 160 years. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges and under '945' in Hong Kong. In the previous 12 months we made CAD$32.7 billion in payments to our customers.

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 latest mini-tender offer for Manulife shares?

Obatan LLC has made a mini-tender offer to purchase up to 500,000 shares at USD$12.00 per share.

How much discount is offered in Obatan's mini-tender for MFC?

The offer is at a discount of 34.04% compared to the closing price on July 14, 2022.

When can Manulife shareholders withdraw their shares from Obatan's offer?

Shareholders can withdraw their shares at any time before 5:00 P.M. New York City Time on December 31, 2022.

Does Manulife recommend acceptance of Obatan's offer?

No, Manulife does not endorse or recommend acceptance of the unsolicited mini-tender offer from Obatan.

What are mini-tender offers and their risks?

Mini-tender offers seek less than 5% of a company's shares and may be at below-market prices, potentially misleading investors.