Canadian Tender Offer: Frontera Energy Corporation (FEC)

Tender Offers - Canada 9 Comments

IMPORTANT UPDATE: Frontera have announced that they will amend the terms of the offer to remove the preferential acceptance of odd lot tenders. Link.

Filing date: 11 Sep 2024
Price at time of writing: $8.14
Paid up capital per share (for tax purposes): Approx. $14.98
Lower limit price: $12.00
Upper limit price: $12.00
Maximum profit: NA – Odd Lot Provision Withdrawn
Expiration date: 17 Oct 2024
Filing: Link

As usual investors should ensure they are comfortable with the tax implications of participation in Canadian tender offers before participating.

9 Comments

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D13
· Reply

September 22, 2024 at 3:46 PM

Hi! Thank you for the blog. I find it very interesting!

I would like to ask: if I buy now (Sept – 22) 99 FEC shares, can I still participate in the tender offer?

Than you in advance!
- DAVID
  · Reply
  
  September 22, 2024 at 4:25 PM
  
  in what trading platform did you buy it?
  - D13
    · Reply
    
    September 23, 2024 at 6:17 AM
    
    in Interactive brokers
Socrates
· Reply

September 24, 2024 at 6:21 AM

I bought yesterday in IBKR and I am still able to participate.
Samuel
· Reply

September 24, 2024 at 5:35 PM

Can someone please explain the part about Deemed Dividend? I’m not sure I understand.
Tony F
· Reply

September 26, 2024 at 12:10 PM

Careful.

https://www.prnewswire.com/news-releases/frontera-to-amend-substantial-issuer-bid-to-remove-the-preferential-acceptance-of-odd-lots-302259270.html
David
· Reply

September 28, 2024 at 9:19 PM

What you say is very important, since if before there were less than 100 shares, they would be purchased in full. Now, if there are more than that, the amount will be prorated. Is this correct?
- Admin
  · Reply
  
  Author
  
  September 30, 2024 at 5:21 PM
  
  All participants will now be prorated, even odd lot holders. We published an update about this here: https://oddlotarbitrage.com/blog/2024/09/26/important-update-canadian-tender-offer-frontera-energy-corporation-fec/ to notify subscribers, and amended this post to reflect the change.
Small Cap Girl
· Reply

October 3, 2024 at 8:42 PM

So I had bought an ODD lot when this deal was announced. I understood quite well how the Cash option 2 was going to work. Now, I am reading the option 1 and I am not sure I understand what paid up capital per share means…

So I paid $8.70 X 99 shares

If I tender them now, I will get CAD $12 in dividend for each share if I understand correctly.

Could someone help me out understanding? Just analyzing my options now.

Canadian Tender Offer: Frontera Energy Corporation (FEC)

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Canadian Tender Offer: Frontera Energy Corporation (FEC)

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