Williams Cos. urges shareholders to reject mini-tender offer

Tulsa’s Williams Cos. has come out against an unsolicited “mini-tender” offer from TRC Capital Investment Corporation. It also claims the offer is really an attempt to take advantage of market volatility caused by the coronavirus fear.

TRC is attempting to purchase 5 million shares or approximately 0.41% of outstanding shares at a common stock price of $18.25 a share which is 6.7% below the $19.60 per share closing price of Williams common stock on March 2.

In response, Williams issued a statement saying the offer represents a 4.2% discount to the closing price of Williams’ common stock on the last trading day before the date of the tender offer. The company said it was also 17% below the three-month weighted average of the closing price of Williams’ common stock as of March 2.

“TRC Capital’s offer of $18.25 per share is equal to the 52-week low of Williams’ common stock price,” stated Williams in its press release. “Williams does not endorse TRC Capital’s offer and recommends that Williams’ stockholders reject the offer and not tender their shares.”

The Oklahoma-based company also said the min-tender offer is at a discount below the market price and is subject to numerous conditions including TRC Capital’s ability to obtain financing.

Williams said it was not associated in any way with TRC Capital, its mini-tender offer or the offer documentation.

” Williams believes that TRC Capital’s offer is an opportunistic attempt by TRC Capital to purchase shares at a discount to the market price at a time when markets face disruption and volatility due to, among other things, the coronavirus.”

Williams also said the TRC Capital offer puts individual investors at risk “because they may not realize they are selling their shares at a discount.”

Source: Williams Cos.

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