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Drinks

Constellation Brands Advises Shareholders To Reject TRC Capital's Offer

Constellation Brands has recommended that shareholders do not sell shares in relation to TRC Capital Investment Corporation's offer.

TRC Capital's 'unsolicited mini-tender offer' consists of an offer to purchase up to 500,000 shares (approximately 0.29%) of Constellation’s outstanding Class A common stock at $210.00 per share in cash, the drinks firm said.

Mini-Tender Offer

The offer price from TRC Capital is approximately 5% less than the $219.99 closing price of Constellation’s Class A common stock on January 15, 2021, the last trading day before the commencement of the mini-tender offer, and approximately 13% less than the $240.34 closing price of Constellation’s Class A common stock on February 10, 2021, it added.

Constellation Brands has distanced itself from TRC Capital, announcing that it is "not associated in any way with TRC, TRC’s mini-tender offer or TRC’s mini-tender offer documents", and recommends that shareholders do not tender their shares to TRC Capital.

Constellation has cautioned stockholders that the mini-tender offer has been made at a price below the market price, and urges stockholders to obtain current market quotes for their shares, to review the conditions to TRC’s mini-tender offer, to consult with their brokers or financial advisors and to exercise caution with respect to this mini-tender offer.

Unsolicited

According to Constellation Brands, TRC Capital has made similar unsolicited mini-tender offers for shares of other publicly traded companies.

Constellation believes that offers like this are often designed to acquire less than 5% of a company’s outstanding shares, thereby avoiding many filing, disclosure, and procedural requirements of the federal securities laws and rules and regulations of the SEC that apply to tender offers for more than 5% of a company’s outstanding shares.

© 2021 European Supermarket Magazine – your source for the latest retail news. Article by Conor Farrelly. Click subscribe to sign up to ESM: The European Supermarket Magazine.

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