$CNBB odd lot tender offer - actionable idea
CNB Community Bancorp - $CNBB odd lot tender offer - tender deadline 25 September 2024
1. CNB Community Bancorp odd lot tender offer
On 23 August, CNB Community Bancorp (ticker $CNBB) has disclosed an offer to purchase up to 145,000 shares (or roughly 6.5%) of outstanding common stock at a fixed price of $38.50 per share. As of August 20, 2024, CNB Community Bancorp, Inc. had 2,219,867 shares outstanding. The announcement is available here.
2. No proration for “odd lot” tender
While $CNBB reserves the right to change the terms of the tender offer, the announcement contains the standard reference to the proration exemption for “odd lots”. This means that tendering shareholders owning fewer than 100 shares, or "odd lot" holders, will have their shares purchased without proration.
The tender offer will expire at 5:00 p.m., Eastern Daylight Time, on Wednesday, September 25, 2024, unless it is further extended. This means that - with sufficient patience and slight market volatility - the holder of 99 shares can pocket a small “free lunch” (currently, the trade “profit” would only work out to around 70 USD).
3. Not investment advice
There is no free lunch in life or investing. Investing is risky. Only 145,000 shares will be repurchased, which in this case could limit the participation / “profits” by arbitrageurs and/or increase the likelihood the tender terms are modified. Do your own due diligence.