TSX:GWO
WINNIPEG, MB, July 27,
2023 /CNW/ - Great-West Lifeco Inc. ("Lifeco") has
been notified of an unsolicited mini-tender offer by Obatan LLC,
made to residents of Ireland, to
purchase up to 50,000 common shares of Lifeco. The unsolicited
offer represents a discount of approximately 39% to the closing
price of the common shares on the TSX on July 14, 2023, the last trading day before the
offer was commenced. The common shares do not trade on a recognized
stock exchange in Ireland.
Lifeco does not endorse Obatan's unsolicited offer, has no
association with Obatan or its offer, and does not recommend
acceptance of the offer. Obatan's offer has been made at a price
below the current market price for the shares.
Mini-tender offers such as Obatan's seek less than 5% of a class
of outstanding shares and so avoid many of the investor protections
like disclosure and procedural protections applicable to most bids
under Canadian law. Securities regulators 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 U.S. Securities and Exchange Commission has noted
that some bidders make these 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".
Lifeco urges shareholders to obtain current market quotes
for their shares and to consult with their broker or financial
advisor in considering Obatan's offer. According to Obatan's offer
documents, shareholder tenders are irrevocable and cannot be
withdrawn once lodged. Further, tendering shareholders do not have
the option to tender only a portion of their shares. Obatan has
reserved the right to purchase an additional amount of shares over
and above 50,000 common shares, such additional amount not to
exceed 2% of the outstanding common shares.
To read more about the risks of mini-tender offers, please
review the Canadian Securities Administrators' comments at
https://docs.mbsecurities.ca/msc/notices/en/item/103061/index.do.
Lifeco requests that a copy of this news release be included in
any distribution of materials relating to Obatan's mini-tender
offer for Lifeco common shares.
About Great-West Lifeco
Inc.
Great-West Lifeco is an international financial services holding
company with interests in life insurance, health insurance,
retirement and investment services, asset management and
reinsurance businesses. We operate in Canada, the United
States and Europe under the
brands Canada Life, Empower, Putnam Investments, and Irish Life. At the end of 2022, our companies
had approximately 31,000 employees, 234,500 advisor relationships,
and thousands of distribution partners – all serving over 38
million customer relationships across these regions. Great-West
Lifeco trades on the Toronto (TSX)
Stock Exchange under the ticker symbol GWO and is a member of the
Power Corporation group of companies. To learn more, visit
greatwestlifeco.com.
SOURCE Great-West Lifeco Inc.