Manulife cautions investors regarding Obatan LLC offer for shares

Rhea-AI Summary

Manulife warns investors about an unsolicited mini-tender offer from Obatan LLC to buy up to 500,000 common shares at USD$12.00 each, representing a discount of approximately 38% from recent market prices. The offer is below market value, prompting concerns as mini-tender offers can mislead shareholders. Manulife advises investors to review the offer carefully and consult with their advisors. The company is not affiliated with Obatan and does not endorse the offer.

Positive

• None.

Negative

• Obatan's offer price is significantly below market value, which could mislead investors.
• The mini-tender offer avoids standard regulatory disclosures, raising concerns for shareholders.
• No right to withdraw tendered shares once submitted could pose a risk for investors.

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

TORONTO, June 24, 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 38.11% and 38.02%, respectively, below the closing prices of Manulife common shares on the TSX and NYSE on June 18, 2021, the last trading day before the mini-tender offer was commenced, and a discount of 38.07% and 37.98%, respectively, below the closing prices on the TSX and NYSE on June 23, 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, there is no right to withdraw a tender of shares once it is received by the depositary.

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 March 31, 2021, we had CAD$1.3 trillion (US$1.0 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.

View original content:http://www.prnewswire.com/news-releases/manulife-cautions-investors-regarding-obatan-llc-offer-for-shares-301319807.html

SOURCE Manulife Financial Corporation

FAQ

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

Obatan LLC has offered to buy up to 500,000 shares of Manulife (MFC) at USD$12.00 each, which is below market price.

How much discount does Obatan's offer represent compared to the market price?

The offer represents a discount of approximately 38% from the closing prices on the TSX and NYSE.

What should MFC shareholders do regarding the Obatan offer?

Shareholders should review the Obatan offer documents, consult their investment advisors, and consider the current market price.

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

No, Manulife is not associated with Obatan and does not recommend accepting the offer.

What risks are associated with mini-tender offers like Obatan's for MFC?

Mini-tender offers may mislead investors due to below-market pricing and lack of regulatory disclosure.