VANCOUVER, British Columbia,
Oct.10, 2016 /PRNewswire/ -- Tahoe Resources Inc.
("Tahoe" or the "Company") (TSX: THO, NYSE: TAHO) has been notified
of an unsolicited "mini-tender" offer made by TRC Capital
Corporation ("TRC Capital") to purchase up to 5,000,000 Tahoe
common shares, or approximately 1.61% of the common shares
outstanding, at a price of CAD$14.35
per share in cash. Tahoe does not endorse this unsolicited
mini-tender offer and recommends that shareholders do not tender
their shares in response to the offer.
Tahoe cautions shareholders that the mini-tender offer has
been made at a price below market, representing discounts of
4.59% and 4.32% to the closing prices of Tahoe's common shares on
the Toronto Stock Exchange and New York Stock Exchange,
respectively, on October 5, 2016, the
last trading day before the mini-tender offer was commenced. In
addition, the offer is subject to a number of conditions. For
example, TRC Capital's offer states that it may terminate the offer
if, among other things, the market price of Tahoe's shares declines
since the close of business on October 5,
2016.
Tahoe is not associated with TRC Capital, its mini-tender offer
or the mini-tender offer documentation. TRC Capital has made
similar unsolicited mini-tender offers for shares of numerous other
public companies. Mini-tender offers are designed to seek less than
5% of a company's outstanding shares, thereby avoiding many
disclosure and procedural requirements applicable to most bids
under Canadian and United States
securities legislation.
The Canadian Securities Administrators (CSA) have expressed
serious concerns about mini-tender offers, such as the possibility
that investors might tender to a mini-tender offer based upon a
misunderstanding of the terms of the offer, including the per
securities price available under the offer relative to the market
price of such securities. Comments from the CSA on mini-tenders can
be found on the Ontario Securities Commission website at
http://www.osc.gov.on.ca/en/SecuritiesLaw_csa_19991210_61-301.jsp.
The U.S. Securities Exchange Commission (SEC) has also published
investor tips regarding mini-tender offers on its website at
https://www.sec.gov/investor/pubs/minitend.htm. The SEC states:
"[s]ome 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." Tahoe
also encourages brokers and dealers, as well as other market
participants, to review the SEC's letter regarding broker-dealer
mini-tender offer dissemination and disclosures on the SEC's
website at:
http://www.sec.gov/divisions/marketreg/minitenders/sia072401.htm.
Tahoe urges investors to obtain current market quotations for
their shares, consult with their broker or financial advisor and
exercise caution with respect to TRC Capital's offer. Tahoe
recommends that shareholders take no action in response to TRC
Capital's mini-tender offer. According to TRC Capital's offer
documents, Tahoe shareholders who have already tendered their
shares may withdraw their shares at any time before 12:01 a.m. (Toronto time) on November 4, 2016 by following the procedures
described in the TRC Capital offer documents.
Tahoe requests that a copy of this news release be included with
all distributions of materials relating to TRC Capital's
mini-tender offer related to Tahoe common shares.
About Tahoe Resources Inc.
Tahoe's strategy is to responsibly operate mines to world
standards, to pay significant shareholder dividends and to develop
high quality precious metals assets in the Americas. Tahoe is a
member of the S&P/TSX Composite and TSX Global Mining indices
and the Russell 3000 on the NYSE. The Company is listed on the TSX
as THO and on the NYSE as TAHO.
For further information, please contact:
Tahoe Resources Inc.
Mark Utting, Vice President,
Investor Relations
investors@tahoeresources.com
Tel: 416-703-6298
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SOURCE Tahoe Resources Inc.