Coterra Energy Inc. is urging shareholders to reject a “mini-tender” offer by a firm that specializes in buying companies’ stock at prices below market value. (Source: Coterra Energy)
Coterra Energy Inc. is urging shareholders to reject a “mini-tender” offer by a firm that specializes in buying companies’ stock at prices below market value.
Such offers are intended to catch shareholders off-guard and count on investors jumping to the conclusion that the price includes a premium usually associated with larger, traditional tender offers, according to the Securities and Exchange Commission (SEC).
Coterra said on July 26 that it had received notice of an unsolicited offer by TRC Capital Investment Corp. to purchase up to 4 million shares of Coterra stock—or about 0.5% of the E&Ps’ outstanding shares.
TRC Capital’s offer price of $25.50 per share is approximately 4.5% lower than Coterra’s July 21 closing price of $26.71.
“Coterra does not endorse TRC Capital's unsolicited mini-tender offer and recommends that stockholders do not tender their shares in response to TRC Capital's offer because the offer is at a price that is significantly below the current market value of Coterra's common stock,” the company said in a press release. “Coterra urges stockholders who have not responded to TRC Capital's mini-tender offer to take no action.”
The company said any stockholders who tender—or have already tendered—their shares may withdraw them at any time prior to the expiration of the offer, currently scheduled for Aug. 22.
Coterra added that it is not affiliated or associated in any way with TRC Capital, its mini-tender offer or its mini-tender offer documents.
TRC Capital has made similar unsolicited mini-tender offers for stock of other public companies including The Walt Disney Company, PayPal Holdings, Capital One Financial Corp., Williams and Coors, among others.
Mini-tender offers seek less than 5% of a company’s outstanding stock to skirt disclosure and procedural requirements by the SEC. As a result, such offers don’t provide investors with the same level of protection afforded by larger, regulated tender offers.
The SEC has issued cautionary guidance to investors regarding mini-tender offers.
Recommended Reading
EOG Ramps Gassy Dorado, Oily Utica, Slows Delaware, Eagle Ford D&C
2025-03-14 - EOG Resources will scale back on Delaware Basin and Eagle Ford drilling and completions in 2025.
Formentera Joins EOG in Wildcatting South Texas’ Oily Pearsall Pay
2025-01-22 - Known in the past as a “heartbreak shale,” Formentera Partners is counting on bigger completions and longer laterals to crack the Pearsall code, Managing Partner Bryan Sheffield said. EOG Resources is also exploring the shale.
Hibernia IV Joins Dawson Dean Wildcatting Alongside EOG, SM, Birch
2025-01-30 - Hibernia IV is among a handful of wildcatters—including EOG Resources, SM Energy and Birch Resources—exploring the Dean sandstone near the Dawson-Martin county line, state records show.
Ring May Drill—or Sell—Barnett, Devonian Assets in Eastern Permian
2025-03-07 - Ring Energy could look to drill—or sell—Barnett and Devonian horizontal locations on the eastern side of the Permian’s Central Basin Platform. Major E&Ps are testing and tinkering on Barnett well designs nearby.
On The Market This Week (Jan. 6, 2025)
2025-01-10 - Here is a roundup of listings marketed by select E&Ps during the week of Jan. 6.
Comments
Add new comment
This conversation is moderated according to Hart Energy community rules. Please read the rules before joining the discussion. If you’re experiencing any technical problems, please contact our customer care team.