Frontera Energy Announces Changes in Shareholder Offer Terms
Frontera Energy's Important Amendment to Shareholder Offer
Equal Treatment for All Shareholders
Frontera Energy Corporation (TSX: FEC) has made a significant amendment to its previously announced substantial issuer bid (the "Offer") that will ensure equitable treatment for all shareholders. This update emphasizes that regardless of how many shares each shareholder holds, everyone will be treated the same under the Offer. This is especially crucial transformation for those shareholders holding less than 100 shares, commonly known as "odd lots".
Details of the Offer
The Offer states that the company aims to purchase up to 3,375,000 shares for cancellation at a price of CAD$12.00 each. The Offer will continue to be open for acceptance until 5:00 p.m. (Eastern Time) on October 17, 2024, unless the Company decides to extend, withdraw, or vary the Offer. The terms and conditions have been clearly defined in the Issuer Bid Circular.
Amendment Changes
Under the previous agreement, if shareholders tendered more shares than the set threshold, the purchased shares would have been distributed based on a pro-rata method, while odd lot shareholders were given preferential treatment and excluded from pro-rating. This change will simplify the process, ensuring that all tenders will now be subject to this equitable pro-rata distribution method.
Impact on Shareholders
For shareholders who previously submitted an odd lot tender, it is essential to note that such tenders are no longer valid. They will need to retender their shares to participate in the Offer again. This requirement emphasizes the necessity for all shareholders to be on the same playing field.
Instructions for Retendering
Odd lot shareholders must resubmit a new letter of transmittal and a notice of guaranteed delivery, which will come with the Notice of Variation. It is vital they complete this step to successfully engage in the Offer. On the other hand, non-odd lot shareholders can opt for either the current or amended forms associated with the Offer.
Company Overview
Frontera Energy Corporation is known for its robust involvement in the exploration, development, and production of oil and natural gas. With a diversified asset portfolio across numerous production blocks, the company actively engages in upstream and midstream facilities in South America, primarily focusing on sustainable and responsible business practices.
For those wishing to keep abreast of any further news releases or notable updates regarding Frontera Energy, it is advisable to subscribe to their communication updates. This approach ensures that stakeholders are informed promptly about developments pertaining to the company.
Frequently Asked Questions
What is Frontera Energy Corporation's stock ticker?
The stock ticker for Frontera Energy Corporation is TSX: FEC.
How does the amendment to the Offer affect shareholders?
The amendment ensures all shareholders are treated equally under the Offer, with no preferential treatment for those holding odd lots.
What is the purchase price per share in the Offer?
Frontera plans to purchase shares at a price of CAD$12.00 each under the Offer.
What is the deadline for acceptance of the Offer?
The Offer remains open for acceptance until 5:00 p.m. (Eastern Time) on October 17, 2024.
Where can I find additional information about the Offer?
More information, including instructions for tendering shares, can be found in the Issuer Bid Circular available from the company.
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