Manulife cautions investors regarding Obatan LLC offer for shares

Rhea-AI Summary

Manulife has been notified of an unsolicited mini-tender offer from Obatan LLC to buy up to 500,000 shares, equating to about 0.026% of its common shares, at USD$15.60 per share. This price represents a discount of up to 21.80% compared to recent closing prices. Manulife advises shareholders to be cautious, highlighting the risks associated with mini-tender offers, which are often made below market value. It encourages shareholders to review the offer documents carefully and seek advice from their investment advisors before making decisions.

Positive

• Manulife is actively informing shareholders about the unsolicited offer, demonstrating transparency.
• The company has robust assets under management, totaling CAD$1.4 trillion as of September 30, 2021.

Negative

• The unsolicited offer is at a significant discount, potentially misleading less-informed investors.
• The mini-tender offer could create confusion among shareholders regarding the fair market value of Manulife shares.

C$ unless otherwise stated

TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO, Nov. 10, 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$15.60 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 19.87% and 19.96%, respectively, below the closing prices of Manulife common shares on the TSX and NYSE on October 29, 2021, the last trading day before the mini-tender offer was commenced, and a discount of 21.76% and 21.80%, respectively, below the closing prices on the TSX and NYSE on November 9, 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 December 7, 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 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 recent mini-tender offer for Manulife shares?

Obatan LLC has made an unsolicited offer to purchase up to 500,000 Manulife common shares at USD$15.60 per share.

What discount does the mini-tender offer represent?

The offer represents a discount of up to 21.80% compared to recent closing prices of Manulife shares.

What should Manulife shareholders do regarding the mini-tender offer?

Manulife advises shareholders to review the offer documents carefully and consult with their investment advisors before making decisions.

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

No, Manulife is not associated with Obatan and does not endorse this unsolicited offer.

When is the deadline to withdraw shares tendered to Obatan's offer?

Shareholders can withdraw their shares by 5:00 PM New York City Time on December 7, 2021.