Reminder: Tap Oil Share Buy Back Offer
At the Tap Oil AGM held on 29 October, Tap shareholders approved the Company’s Delisting from the Official List of the ASX as well as an equal access off-market buy-back offer.
Once the Delisting is implemented, the Company’s Shares will no longer be tradeable on the ASX and it will be more difficult for Shareholders to dispose of their shares. Immediately following the Buy Back, Tap’s shares will be suspended from trading, and Shareholders will have no opportunity to trade their shares on ASX beyond this date. The Buy Back provides Shareholders the opportunity to potentially realise some or all of their investment in the Company prior to the Delisting, without having to pay any brokerage costs associated with the sale.
The offer price is A$0.078 (7.8 cents) per share, and represents a 2.42% premium to the 30-day VWAP of Tap shares traded on ASX up to the date of announcement of the Buy Back (on 29 September 2020), a 5.1% premium to the closing price of Tap shares on ASX prior to the Buy Back opening, and a 7.7% premium to the closing price of Tap shares on 26 November 2020.
The Buy Back is for up to 230 million fully paid ordinary shares in the Company, equating to A$17.94 million. If the Company receives applications in excess of 230 million shares, there will be a pro-rata scale back.
The Company commissioned an independent expert to provide an opinion on whether the Buy Back is fair and reasonable. The Independent Expert concluded that the Buy Back is fair and reasonable to Shareholders in the absence of any superior alternative. A copy of this report and more details about the Buy Back can be found in the Offer Document, the Notice of Meeting located on the ASX website or in the Investor Centre section on the Tap Oil website. Shareholders are encouraged to read the Offer Document in full before deciding whether to participate in the Buy Back.
The Delisting is expected to occur on 16 December 2020 and the Buy Back provides Shareholders with an opportunity to potentially sell some or all of their Shares prior to the Delisting.
Each of Tap’s Directors intend to accept the Buy Back for all of the Tap shares they hold.
Shareholders should note that if you do nothing, your shares will not be bought back, and, following the Delisting, you will hold shares in an unlisted Company. It will then be more complex and expensive for you to trade your shares, and it is likely that liquidity in the market for Tap’s shares will also be substantially reduced.
How to Apply
If Shareholders would like to participate in the Buy Back, they can simply complete and return the Application Form by Monday, 14 December 2020 by following the instructions on the form.
If Shareholders hold shares on the Issuer-sponsored subregister they can complete the Application Form and, using the reply paid envelope provided, mail it to the share registry before the closing date. Alternatively they scan and email a sign Application form to email@example.com.
If Shareholders hold shares on the CHESS-sponsored subregister, the Offer may be accepted by completing the Application Form and signing and returning it to their Controlling Participant (usually their broker).
For further information in relation to the Buy Back, please contact the Tap Oil Shareholder Information Line on 1300 650 320 between the hours of 8:30am to 5:00pm (AEDT), Monday to Friday.