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My question is specific to an Adani groups acquisition of a majority stake in the company Snowman Logistics (both are companies in India). I have shares in the Snowman Logistics company.
What will happen to them?

There is also an open offer to buy 26% more stake in the company?
Will I continue to hold my shares after the open offer expires?

  • What will happen to them? What do you mean ? If you want to sell, sell during the open offer if you get your desired price. – DumbCoder Jan 15 at 17:21
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    What happens if I don’t sell during the open offer? – A j Jan 15 at 18:45
  • How would we know if you 'will continue to hold your shares'?? – Aganju Jan 16 at 3:52
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    @Aganju read the question please. what if I don’t sell during the open offer period? Do I get cash for the shares at whatever the open market price is at the end of the offer period? – A j Jan 16 at 7:31
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The terms of the acquisition should spell it out. I.e. sometimes the acquisition will pay a certain amount of cash for each share of the acquired company. Sometimes, each share of the acquired company will be exchanged for some ratio of shares in the acquiring company. (I.e. for each share of the acquired company, that shareholder will be given 0.42 shares of the acquiring company). Sometimes, it will be a combination of both. But those terms will be listed in the agreement, and that agreement should be voted on by the shareholders, so it won't be a mystery.

  • This is open offer post acquisition of majority control. – Dheer Jan 16 at 17:10
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You will continue to hold the shares.

As there is change in management control with Adani acquiring 40%, This is mandatory open offer to further acquire 25% shares; giving minority shareholders opportunity to exit.

Your participation is voluntary. If you don't do anything, you will continue to hold the shares of the company as previously held. The company will continue to be listed and traded on exchange

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    The next questions, of course, are "What do you do with them? Are they still marketable?" – RonJohn Jan 16 at 17:11
  • @RonJohn Good point. Ofcourse the company still remains public entity and this open offer doesn't make it private. So the shares are traded on exchange. Elaborated the answer – Dheer Jan 16 at 17:15

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