TSX:GWO
WINNIPEG, MB, May 21, 2021 /PRNewswire/ -- Great-West Lifeco
Inc. ("Lifeco") has been notified of an unsolicited mini-tender
offer by Obatan LLC, made to residents of the United Kingdom, 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% to the closing price
of the common shares, and a discount of approximately 41.1% to the
closing price of the Series F shares, on the TSX on May 17, 2021, the last trading day before the
offer was commenced. The common shares and the Series F shares do
not trade on a recognized stock exchange in the UK.
Lifeco does not endorse Obatan's unsolicited offer, has no
association with Obatan or its offer, and does not recommend
acceptance of the offer. Obatan's offer has been made at prices
below the current market prices for the shares.
Mini-tender offers such as Obatan's seek less than 5% of a class
of outstanding shares and so avoid many of the investor protections
like disclosure and procedural protections applicable to most bids
under Canadian law. Securities regulators have expressed serious
concerns about mini-tender offers, including the possibility that
investors might tender to such offers without understanding the
offer price relative to the actual market price of their
securities. The U.S. Securities and Exchange Commission has noted
that some bidders make these offers at below-market prices "hoping
that they will catch investors off guard if the investors do not
compare the offer price to the current market price".
Lifeco urges shareholders to obtain current market quotes
for their shares and to consult with their broker or financial
advisor in considering Obatan's offer. According to Obatan's offer
documents, shareholder tenders are irrevocable and cannot be
withdrawn once lodged. Further, tendering shareholders do not have
the option to tender only a portion of their shares. Obatan has
reserved the right to purchase an additional amount of shares over
and above 50,000 common shares and 50,000 Series F shares, such
additional amount not to exceed 2% of the relevant class of
shares.
To read more about the risks of mini-tender offers, please
review the Canadian Securities Administrators' comments at
https://docs.mbsecurities.ca/msc/notices/en/item/103061/index.do.
Lifeco requests that a copy of this news release be included in
any distribution of materials relating to Obatan's mini-tender
offer 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 businesses. We operate
in Canada, the United States and Europe under the brands Canada Life, Empower
Retirement, Putnam Investments, and Irish
Life. At the end of 2020, our companies had approximately
24,500 employees, 205,000 advisor relationships, and thousands of
distribution partners – all serving our more than 30 million
customer relationships across these regions.
Great-West Lifeco and its companies have approximately
$2.1 trillion in consolidated assets
under administration as at March 31,
2021 and are members of the Power Corporation group of
companies. Great-West Lifeco trades on the Toronto (TSX) Stock Exchange under the ticker
symbol GWO. To learn more, visit greatwestlifeco.com.
CONTACT: Media Relations, Liz
Kulyk, 204-391-8515,
Media.Relations@canadalife.com; Investor Relations,
Deirdre Neary, 647-328-2134,
Deirdre.Neary@canadalife.com