Could someone smarter explain what I’m not understanding? I own Pihlajalinna shares in a stock savings account at Mandatum. Through company events, I can choose from two options:
Option 2: TAKE NO ACTION (default)
Option Reply Deadline: 7/10/2020 12:00 AM"
If I do nothing (option 2), I will receive EUR 16 per share, assuming the competition authority approves the deal. If I choose option 1, I will also receive EUR 16 per share, assuming the competition authority approves the deal.
So, what is the practical difference between these options? In both cases, will the broker charge a sales fee according to the price list when the shares exit the stock savings account?
My interpretation with those choices is: 1) accept the offer and get 16e, 2) do nothing, i.e., do not accept the offer, and you can trade the shares.
Nothing forces you to sell to Mehiläinen, and this is a normal situation in all tender offers. The acquiring company can then seek delisting after 90% ownership, after which you also cannot trade.
The world looked different when the merger was announced. At that time, I bought a batch of Pihlajalinna shares with a much smaller expected percentage return to go with my old holdings.
At that time, I calculated the probabilities for the merger. The biggest obstacle is probably still the approval of the competition authority. I once went through Pihlajalinna’s overlaps with Mehiläinen and possible local competition problems. I compared the situation to Terveystalo’s previous acquisitions (e.g., Attendo). I don’t believe that the competition authority has any reason to oppose this deal either, or the entire operation of the competition authority would appear in a very strange light. I myself have placed a small bet on the merger going through. But it is a bet – not a sure thing.
Now that dividend season is pretty much over, Pihlajalinna offers a great opportunity to pick up “extra dividends”. Authority decisions are always a bit of a lottery, but with this scratch card, the expected value is clearly positive. You need something exciting for summer vacation too
At what pace is Pihlajalinna’s share price approaching the tender offer price (16.0)? Now it’s 14.75 and there doesn’t seem to be any interim update in sight. The FCC (Kilpailu- ja kuluttajavirasto) will give its phase two statement on June 24, so it will probably jump up then.
Bring it down if the deals don’t go through. In my opinion, the current price is perfectly justified, considering the company’s poor quality and the risk of a decision unfavorable to the owner.
Congratulations to the shareholders who sold their shares immediately upon the tender offer’s announcement. Waiting for the acquisition to materialize and then joining in later has been costly for investors, while the rest of the stock market continues to rise.
Hi,
How should I proceed, as I already hastily accepted Nordnet’s tender offer for Mehiläinen in the corporate events section? However, I changed my mind and removed my response from the same place in the corporate events. I only later read in the terms that I should have canceled it through the portfolio’s message center. I have now sent many messages to customer service about this, and the first message asked if I accept the charge, to which I replied that I do about a week ago. Since then, nothing has happened, what should I do?
Let’s bump this thread again. Someone is selling and now you can get them for 14.00 e each. I added more. The expected value is clearly positive in my opinion.
Added some to the corner of the portfolio here too. There’s a chance for good percentages in the short term if the deal goes through in Q3. Waiting for the KKV decision. There’s a risk too, of course, if the deal doesn’t go through for some reason, that’s why it’s only a small investment.
I’ve also been adding to Pihlaja (Pihlis). I still believe the tender offer will go through. It would be nice to get an update from the Finnish Competition and Consumer Authority (KKV), and I’m sure it will come soon.
I wonder why the CEO is selling their shares on the market if they believe the tender offer will yield significantly more? In my opinion, it’s not a very good sign. Of course, it depends on how much of their ownership the CEO is selling.
If the KKV (Finnish Competition and Consumer Authority) approves the deal and Mehiläinen acquires the sufficient number of shares, whether it’s 70% or 75%, has Mehiläinen committed to redeeming the remaining shares at that €16 price, or should we fear they will only buy them at the day’s market price?
There’s a risk too, of course, if the deal doesn’t go through for some reason, that’s why it’s only a small investment.