Today MRP released a disclosure, staying behind their conviction that their tender offer price is “fair”. So the tender offer will continue, but the detail is that, the purpose is not to delist the company but to get a larger stake.
I think this is the problem when you try to own a company that there is only 1 majority shareholder. They can do anything in their power to take advantage of the minority shareholders. Just look at MRP, even if they changed their reason from delisting to “getting a larger stake”, what will happen is that people will tender their shares. Because no one wants to hold on to a company that takes advantage of the small investors. I wouldn’t.
If there was another majority holder, there could have been a negotiation. But since they are the only majority holder and the 20% or so remaining shareholders are small, retail investors, I’m/we are at a disadvantage.
What MRP is saying is, if you think the price of 7.25 is NOT fair, then don’t sell your shares on the tender offer. If you think 7.25 is fair, then sell it. Yeah, well, I don’t think the 7.25 is fair. But I have no choice. I don’t want to be in the same company that takes advantage of the minority. So I think the other 20% thinks the same way. Well, we’ve been had once, why should we hold on? No thank you. It would be good if all the 20% retail investors would not tender their shares, but its so divided that its can be hard to have an advantage in this negotiation.
I shall tender my shares. I don’t want to keep this company. They are not very fair with their shareholders. I have bought at 7.12 so there’s a little bit of profit in it.