Monster Beverage (MNST) – Odd Lot Tender Offer – low possibility of $990 gain

Current Price – $150.17

Offer Price – $142 - $160

Upside – potentially 5.5% or $990 (if the upper pricing limit is used)

Expiration date –  8 June 2016

No proration for holders of less than 100 shares

SEC Filling

Note: Be aware of Citron's report on MNST with $80 target (http://www.citronresearch.com/the-monster-created-by-wall-street/). The company traded at c. $130/share prior to tender announcement, therefore I do not believe the tender at $160 is likely.

 

Summary:

Monster Beverage Corporation, a Delaware corporation is offering to purchase for cash shares of its common stock, pursuant to auction tenders at prices specified by the tendering shareholders of not less than $142.00 nor greater than $160.00 per share. We are offering to purchase shares having an aggregate purchase price of no more than $2.0 billion using cash on hand. Assuming that the Offer is fully subscribed, the maximum of 14,084,507 shares that the Company is offering to purchase under the Offer represents 6.9% of the total number of shares issued and outstanding as of April 15, 2016. Assuming that the Offer is fully subscribed, the minimum of 12,500,000 shares that the Company is offering to purchase under the Offer represents 6.2% of the total number of shares issued and outstanding as of April 15, 2016.

 

Odd lot holders

If you are the owner of less than 100 shares in the aggregate, whether such shares are owned beneficially or of record, you validly tender all of these shares at or below the Purchase Price prior to the Expiration Time and all conditions to the Offer are satisfied or waived, we will purchase all of your shares without subjecting them to proration. 

 

Source and amount of funds

The Offer is not subject to any financing condition. Assuming that the Offer is fully subscribed, we expect the aggregate purchase price for the shares, together with all related fees and expenses, to be $2.0 billion. We intend to fund any purchase of shares pursuant to the Offer, including the related fees and expenses, from cash on hand.