Management at one company that owns and operates a refinery in Tulsa is urging shareholders to reject an unsolicited mini-tender offer by another firm.
HollyFrontier Corporation was notified of the offer by TRC Capital Corporation which indicated it wants to purchase up to 2 million shares of the company common stock. The purchase would represent about 1.17% of the outstanding shares in the company.
TRC’s offering a price of $49.75 per share which according to HollyFrontier is approximately 4.38% lower than the closing price per share on the New York Stock Exchange on March 1, 2019. HollyFrontier pointed out that the TC unsolicited mini-tender offer is subject to a number of conditions including that TRC obtains sufficient financing.
“HollyFrontier does not endorse TRC’s unsolicited mini-tender offer and is not associated in any way with TRC, its mini-tender offer or its mini-tender offer documents,” stated the company in its announcement.
“Because TRC’s offer price is below the current market value for shares of Company common stock, HollyFrontier recommends that stockholders reject this unsolicited offer and not tender their shares in response to TRC’s offer, or, if stockholders have already tendered shares, that they withdraw their shares by providing the written notice described in the TRC mini-tender offer documents prior to the expiration of the offer, currently scheduled for 12:01 a.m. (New York City time) on April 2, 2019,” continued the announcement..
HollyFrontier maintains an oil refinery in Tulsa as well as others in Kansas, New Mexico and Utah.