Restaurent Brand Internationals

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I hold QSR @81.90 and today I had a message on my trading account board as below, and need your guidance as unable to understand the meaning of this msg. Hope you can help in taking a right decision for me.

Re-organization Notice
Dear client, please be advised that there is a voluntary Mini-Tender announced for RESTAURANT BRANDS INTL by TRC Capital that may require your action prior to the deadline. Holders have the following options:

Option 1: To receive $73.75 USD net per share of RESTAURANT BRANDS INTL tendered. Subject to Proration.

Option 2: Do Not Participate. (Default Option)

To exercise, please contact an Investment Representative at 1-800-760-1180 or 1-416-868-3898 prior to December 16, 2020 (8:30 AM Eastern Time). Thank you for giving this your prompt attention. Yours sincerely, HSBC InvestDirect.

Note: Solicitation fees: 0.75$ USD per share deposited up to a maximum of 3000 per beneficial holder. Certain restrictions, fees, and tax consequences may apply. The important information above is not exhaustive, holders are strongly advised to review any published material regarding this security and or corporate action event prior to submitting their instructions.

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Asked on November 24, 2020 10:58 am
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Hey there.

Looking deeper into this, it seems like it may have been a mistake on your brokers end. As I mentioned prior, TRC Capital is notorious for offering these mini-tenders below market price. And typically, their strategy is to go 4-5% below current market price.

$73.75 CAD is in that ballbark (4.7% as of Friday's close). So I have a feeling your brokerage messed this up and stated the wrong currency. It just doesn't make any sense that the company would offer essentially an all time high for QSR stock price. You could simply accept their offer to sell your shares in the $96 CAD range to them, and then rebuy them again for an instant profit.

Contact your brokerage and see if that original offer is truly USD. I'd bet it's not.

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Posted by Dan Kent
Answered on November 24, 2020 1:39 pm
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So, this is what we call a mini-tender. A mini-tender is an offer that is small enough that it doesn't trigger strict regulatory requirements needed for an official tender offer of 5% or more.

TRC Capital is a private company that does this all the time. It's done so with famous companies like Brookfield, Disney, Intel.

Even most recently the company tried to do this with Newmont gold, and Newmont highly suggested investors avoid this, as the offer price was significantly below market price. This is typically what TRC Capital does, is offers below market price. Most of their offers make no sense really.

However, by the looks of it you own QSR at $81 Canadian? or is that USD.

If it's Canadian, this actually represents a significant boost to your share price. $73.75 USD is actually around $96 Canadian, which really puzzles me.

There is no public statement of this tender offer yet, so it's hard for us to see any conditions attached to the deal. We're going to keep an eye on this and update you though. I imagine you have a while to decide.

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Posted by Dan Kent
Answered on November 24, 2020 12:53 pm
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