WINNIPEG, MB, May 21, 2021 / PRNewswire / – Great-West Lifeco Inc. (“Lifeco”) has been notified of an unsolicited mini-takeover bid by Obatan LLC made to residents of the UK, to purchase up to 50,000 common shares of Lifeco and up to 50,000 non-cumulative first preferred shares, Series F of Lifeco. The unsolicited offer represents a discount of approximately 40.0% from the closing price of the Common Shares and a discount of approximately 41.1% from the closing price of the Series F Shares on the TSX on May 17, 2021, on the last trading day before the start of the offer. The ordinary shares and the Series F shares are not traded on any recognized stock exchange in the United Kingdom.
Lifeco does not endorse Obatan’s unsolicited offer, has no connection with Obatan or its offer, and does not recommend acceptance of the offer. Obatan’s offer was made at prices below the current market prices for the shares.
Mini take-over bids like Obatan’s target less than 5% of an outstanding share class and thus bypass many of the investor protections such as disclosure and procedural protections applicable to most bids. under Canadian law. Securities regulators have expressed serious concerns about mini take-over bids, including the possibility that investors would bid on such bids without understanding the offer price relative to the actual market price of their. securities. The United States Securities and Exchange Commission has noted that some bidders are making these offers below market prices “in the hope that they will catch investors off guard if they do not compare the price of the offer. at the current market price “.
Lifeco urges shareholders to obtain current market prices for their shares and to consult their broker or financial advisor before considering the Obatan offer. According to Obatan’s offer documents, shareholder offers are irrevocable and cannot be withdrawn once filed. In addition, bidding shareholders do not have the possibility of depositing only part of their shares. Obatan has reserved the right to purchase an additional amount of shares in addition to 50,000 common shares and 50,000 Series F shares, such additional amount not to exceed 2% of the relevant share class.
For more information on the risks of mini take-over bids, please see the Canadian Securities Administrators’ comments at https://docs.mbsecurities.ca/msc/notices/en/item/103061/index.do.
Lifeco requests that a copy of this press release be included in any distribution of documents relating to Obatan’s mini-takeover bid for Lifeco common shares and Series F preferred shares.
About Great-West Lifeco Inc.
Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance. We operate in Canada, United States and Europe under the brands Canada-Vie, Empower Retirement, Putnam Investments and Irish life. At the end of 2020, our businesses had approximately 24,500 employees, 205,000 advisor relationships and thousands of channel partners – all serving more than 30 million customer relationships in these regions.
Great-West Lifeco and its companies have approximately $ 2.1 trillion in consolidated assets under administration at March 31, 2021 and are members of the Power Corporation group of companies. Great-West Lifeco trades on the Toronto (TSX) Exchange under the ticker symbol GWO. To learn more, visit greatwestlifeco.com.
SOURCE Great-West Lifeco Inc.