Solar modules company First Solar, Inc. (FSLR: Quote), Friday recommended that its shareholders not tender their shares in response to a mini-tender offer made by TRC Capital Corporation (TRC) to purchase up to 2 million or approximately 2.3 percent of the company’s shares at a price of $30 per share in cash. First Solar said the offer is at a price below the stock’s market price, and is subject to many conditions.
TRC’s offer price is approximately 5 percent less than the $31.58 closing price of First Solar’s stock on January 22, the day before the mini-tender offer was made.
First Solar refrained from endorsing the offer and urged shareholders to obtain current market quotes for their shares, to review the conditions to TRC’s mini-tender offer, to consult with their brokers or financial advisors and to exercise caution with respect to this mini-tender offer.
Mini-tender offers are designed for companies seeking to acquire less than 5 percent of another company, thereby providing them with the luxury of avoiding the SEC procedural requirements that apply to offers for more than 5 percent of a company’s shares, and therefore does not offer the same level of protection as with larger tender offers.
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by RTT Staff Writer
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