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Posted: Wed Jan 08, 2025 4:28 am
In the stock market, we very often come across public purchase offers or OPAs . But these cannot be presented just anyhow. Different formalities and numerous regulations must in fact be respected. And even if OPAs do not all meet the same objectives, they must respect these principles. Here is how it works.
What is the purpose of a public purchase offer (OPA)?
A takeover bid is an important moment in the history of a company. However, it is not rare and many examples have been observed recently. This is the case of the takeover bid launched by Véolia on Suez or Bouygues Telecom on Keyyo. The general principle is to make an offer on the capital of a targeted company. The company making this offer may or may not be listed on the stock exchange. It will then issue an offer to the shareholders of another company in order to take over their shares.
As a general rule, a true takeover bid concerns an offer for which payment will be made in cash. When this payment is made via, for example, an exchange of belgium phone data shares, it is then a public exchange offer . In the case where the initiator of the offer is already considered the majority shareholder of the target company, it is then a simplified public purchase or exchange offer (OPAS or OPES). Mixed offers can also be encountered. In this case, the initiator will resort to an exchange of shares and a payment in cash.
The takeover bid is launched with the aim of taking control of another company . The main objectives are:
Gain market share;
Reduce costs through economies of scale;
Finding new sources of growth.
When a takeover bid is launched, the open period will see the shareholders of the company choose between keeping or selling their shares. In this case, they can sell their shares at a price higher than the last listed price. This then corresponds to a premium.
But this is not the only interest of a takeover bid. It can also have a strategic role.
Differences between a public purchase offer (OPA) and a public exchange offer (OPE)
As has already been said, a public purchase offer is generally made in cash. When the offer is made in securities, it is a public exchange offer. The initiator of the acquisition then achieves a significant increase in its capital and will therefore create new shares. It will then be necessary to develop a share exchange parity. The transfer will be made on this exchange parity which can nevertheless fluctuate depending on the evolution of the stock market price of the shares used by the two
What is the purpose of a public purchase offer (OPA)?
A takeover bid is an important moment in the history of a company. However, it is not rare and many examples have been observed recently. This is the case of the takeover bid launched by Véolia on Suez or Bouygues Telecom on Keyyo. The general principle is to make an offer on the capital of a targeted company. The company making this offer may or may not be listed on the stock exchange. It will then issue an offer to the shareholders of another company in order to take over their shares.
As a general rule, a true takeover bid concerns an offer for which payment will be made in cash. When this payment is made via, for example, an exchange of belgium phone data shares, it is then a public exchange offer . In the case where the initiator of the offer is already considered the majority shareholder of the target company, it is then a simplified public purchase or exchange offer (OPAS or OPES). Mixed offers can also be encountered. In this case, the initiator will resort to an exchange of shares and a payment in cash.
The takeover bid is launched with the aim of taking control of another company . The main objectives are:
Gain market share;
Reduce costs through economies of scale;
Finding new sources of growth.
When a takeover bid is launched, the open period will see the shareholders of the company choose between keeping or selling their shares. In this case, they can sell their shares at a price higher than the last listed price. This then corresponds to a premium.
But this is not the only interest of a takeover bid. It can also have a strategic role.
Differences between a public purchase offer (OPA) and a public exchange offer (OPE)
As has already been said, a public purchase offer is generally made in cash. When the offer is made in securities, it is a public exchange offer. The initiator of the acquisition then achieves a significant increase in its capital and will therefore create new shares. It will then be necessary to develop a share exchange parity. The transfer will be made on this exchange parity which can nevertheless fluctuate depending on the evolution of the stock market price of the shares used by the two