Manulife cautions investors regarding New York Stock and Bond LLC offer for shares

Rhea-AI Summary

Manulife has issued a warning to investors regarding an unsolicited mini-tender offer from New York Stock and Bond to purchase up to 50,000 Manulife common shares (less than 0.003% of outstanding shares) at USD$12.50 per share. The company emphasizes that this offer represents a significant discount of approximately 61% below current market prices on both TSX and NYSE.

The company highlights that mini-tender offers, which target less than 5% of outstanding shares, often bypass standard securities regulations disclosure requirements. Both the Canadian Securities Administrators and SEC have expressed concerns about such offers, particularly regarding investors potentially accepting without understanding the price disparity with market values.

Positive

• None.

Negative

• Unsolicited mini-tender offer at ~61% discount to market price threatens shareholder value
• Potential risk of uninformed shareholders accepting below-market offer

C$ unless otherwise stated                                            TSX/NYSE/PSE: MFC     SEHK: 945

TORONTO , Dec. 9, 2024 /PRNewswire/ - Manulife has been notified of an unsolicited mini-tender offer made by New York Stock and Bond LLC (New York Stock and Bond) to purchase up to 50,000 Manulife common shares, or less than 0.003% of the common shares outstanding, at a price of USD$12.50 per share.

Manulife is in no way associated with New York Stock and Bond and does not recommend or endorse acceptance of this unsolicited offer.

Manulife cautions shareholders that the mini-tender offer has been made at a price below the current market price for Manulife shares. The offer represents a discount of approximately 60.76% and 60.80%, respectively, below the closing prices of Manulife common shares on the TSX and NYSE on November 27, 2024, the last trading day before the mini-tender offer was commenced, and a discount of 61.43% and 61.42%, respectively, below the closing prices on the TSX and NYSE on December 6, 2024.

Mini-tender offers are designed to seek less than 5% of a company's outstanding shares, avoiding disclosure and procedural requirements applicable to most bids under Canadian and U.S. securities regulations. The Canadian Securities Administrators (CSA) and the U.S. Securities and Exchange Commission (SEC) 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 SEC states that "bidders make mini-tender 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."

Shareholders should carefully review the New York Stock and Bond offer documents and current market price for Manulife shares, and consult their investment advisors regarding any offer they may receive and review with their advisors all options for their investment in Manulife shares.

Manulife has stock transfer agents providing shareholder services in Canada, the United States, Hong Kong and the Philippines. These local agents provide services directly to our registered shareholders and can provide information on share account management, direct deposit of dividends, dividend reinvestment and share purchase plans. Please email manulifeinquiries@tmx.com for more information.

Manulife requests that a copy of this news release be included in any distribution of materials relating to New York Stock and Bond's mini-tender offer for Manulife common shares.

About Manulife

Manulife Financial Corporation is a leading international financial services provider, helping people make their decisions easier and lives better. With our global headquarters in Toronto, Canada, we provide financial advice and insurance, operating as Manulife across Canada, Asia, and Europe, and primarily as John Hancock in the United States. Through Manulife Investment Management, the global brand for our Global Wealth and Asset Management segment, we serve individuals, institutions, and retirement plan members worldwide. At the end of 2023, we had more than 38,000 employees, over 98,000 agents, and thousands of distribution partners, serving over 35 million customers. We trade as 'MFC' on the Toronto, New York, and the Philippine stock exchanges, and under '945' in Hong Kong.  

Not all offerings are available in all jurisdictions. For additional information, please visit manulife.com.

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SOURCE Manulife Financial Corporation

FAQ

What is the price offered by New York Stock and Bond for Manulife (MFC) shares?

New York Stock and Bond offered USD$12.50 per share, which represents approximately 61% discount to Manulife's market price on both TSX and NYSE as of December 6, 2024.

How many shares is New York Stock and Bond attempting to purchase from Manulife (MFC)?

New York Stock and Bond is attempting to purchase up to 50,000 Manulife common shares, representing less than 0.003% of the outstanding shares.

Why is Manulife (MFC) warning investors about the mini-tender offer?

Manulife is warning investors because the offer price is significantly below market value and mini-tender offers often avoid standard securities regulations, potentially misleading uninformed investors.