Since we have to wait until the deadline to tender our shares. If the stock price gets higher than the tender price range, will we be able to sell it in the market? Or we are obligated to do it once we tender shares with our broker (IBKR, e.g.) Thanks!
Hi Jun Jiang, thanks for your question. I would normally suggest just sell the shares in the market once the price is close to or exceeds the lower tender band. So if the price is currently, say, 22.59 USD then just sell the shares (thus locking in the usual profit) and place a new Good Till Date (tender deadline - 1 day) limit order for additional 99 shares in the expectation that if your order gets filled you can actually tender the shares at least at 22.6 USD or sell it again on open market. Hope this answers your question.
I have a question regarding the execution time. If we tender the shares now, when will it be executed? within a few days? Or we need to wait until the expiration date?
What this essentially means in legal terms is that your odd lot (normally 99 or less) would not be "executed" but submitted for tender in line with the tender specifications. You should always check both the tender deadline. In $SILA case the Offer expires at 5:00 p.m., New York City Time, on July 19, 2024. Please note $SILA reserves the right to extend the Offer period for any reason. Then you need to check your selection deadline with your broker. We recommend Interactive Brokers. In the case in question the effective date is also 2024-07-19 but we recommend to tender your shares at least 1 day in advance. After you tender your shares (i.e. "Submit shares for tender at bid price" or otherwise the lower band) it usually takes 10 to 20 days for cash to be credited to your account.
Since we have to wait until the deadline to tender our shares. If the stock price gets higher than the tender price range, will we be able to sell it in the market? Or we are obligated to do it once we tender shares with our broker (IBKR, e.g.) Thanks!
Hi Jun Jiang, thanks for your question. I would normally suggest just sell the shares in the market once the price is close to or exceeds the lower tender band. So if the price is currently, say, 22.59 USD then just sell the shares (thus locking in the usual profit) and place a new Good Till Date (tender deadline - 1 day) limit order for additional 99 shares in the expectation that if your order gets filled you can actually tender the shares at least at 22.6 USD or sell it again on open market. Hope this answers your question.
Thanks, John. It makes a lot of sense. It actually got to 22.7$ today, higher than the lower end of the tender price of 22.6$.
Thanks for sharing!
I have a question regarding the execution time. If we tender the shares now, when will it be executed? within a few days? Or we need to wait until the expiration date?
thanks a lot,
Absolutely, good question. I should have covered this better in my original post. One always needs to verify the updated SEC filings. In $SILA case please refer to https://www.sec.gov/cgi-bin/browse-edgar?CIK=0001567925&owner=exclude
What this essentially means in legal terms is that your odd lot (normally 99 or less) would not be "executed" but submitted for tender in line with the tender specifications. You should always check both the tender deadline. In $SILA case the Offer expires at 5:00 p.m., New York City Time, on July 19, 2024. Please note $SILA reserves the right to extend the Offer period for any reason. Then you need to check your selection deadline with your broker. We recommend Interactive Brokers. In the case in question the effective date is also 2024-07-19 but we recommend to tender your shares at least 1 day in advance. After you tender your shares (i.e. "Submit shares for tender at bid price" or otherwise the lower band) it usually takes 10 to 20 days for cash to be credited to your account.
Hope this helps.
great, thanks. very informative!