Tender Offer Application Guide
1. What Is a Tender Offer?
Think of it as someone offering to buy your shares at a premium price.
In a tender offer, a company (the offeror) makes a voluntary proposal to buy shares of a listed company, usually at a price higher than the current market price. As a shareholder, you have a free choice:
- Accept: Sell your eligible shares at the attractive offer price and receive cash.
- Decline: Keep your shares – nothing changes for you.
Key Points at a Glance:
- Voluntary: You decide whether to participate. No obligations.
- Cash Only: The offer is settled fully in cash – no shares will be distributed to you.
- No Fees: Sahm does not charge any fees for your participation.
- Application Restriction: For each tender offer, only one active application is allowed per portfolio. Before it is processed, you can change your application by cancelling it and submitting a new one.
- Trading Unaffected: You can still trade the stock on the exchange during the offer period.
2. How to Apply on Sahm App
It's as simple as placing an order – just follow these steps:
1. Access the menu and find the offer: Tap "More" to open the sidebar, select "Financial Services," then tap "Tender Offer" to view the list of eligible companies.
2. Enter quantity and submit: Choose your target company, enter the number of shares you wish to tender, then tap "Apply" and enter your trading password to complete.
To modify or cancel a pending application:
- Go to the "Record" page, find your application, and tap "Cancel" to complete the process (confirm in the pop-up).
- To change the quantity, cancel the existing one first, then submit a new application from the Tender Offer page.
Important: Only one active application is allowed per portfolio for each tender offer. If you enter a quantity higher than your maximum eligible amount, the system will automatically adjust it down to the maximum.
3. Key Dates, Status, and What Happens Next
A tender offer follows a fixed timeline. Understanding these simple points will help you stay on track:
Three Statuses – Easy to Read:
- Upcoming: Announced but not yet open – applications are not accepted yet.
- Offering: The offer is open – this is your window to apply.
- Pause: Temporarily suspended – no applications accepted during this time.
Watch These Three Dates (all times shown in KSA):
- "Today": The current date is clearly displayed.
- Sahm Application Deadline: This is your final cut-off time to submit on Sahm. It may be earlier than the market deadline, so don't miss it!
- Payment Date: The settlement date – when the cash will be credited to your account.
Which shares are eligible?
Only shares that were bought and fully settled on or before the last trading day of the offer are eligible to be tendered.
What happens after execution and settlement?
- The tendered shares are frozen until settlement is complete.
- After settlement, the full cash amount is paid to your account, and your holdings are adjusted accordingly.
- If all your eligible shares are bought back, your position becomes 0. If only part is bought back, the remaining shares stay in your portfolio.
Why can't I apply?
If your account has certain restrictions (e.g., margin financing, expired documents, re-KYC required, or regulatory limits), you may not be able to apply. The app will show the specific reason – just follow the instructions provided.