When a company makes a tender offer, shareholders are permitted to sell their shares at a specified price within a designated window period. Any scale-back of the tender offer may be applied in accordance with the terms and conditions of the offer.
This corporate action affects Investments Accounts and Leveraged Accounts differently, and shareholders must take specific actions to participate.
What is a tender offer?
A tender offer allows you to sell your shares at a specified price within a set window period. Any scale-back of the tender offer may be applied in accordance with the terms and conditions of the offer.
Key terms explained
Term | What it means |
Tender price | The price per share set by the company and stated in the offer |
Election | Your choice to participate (or not participate) in the tender offer |
Scale-back | When more people want to sell than the company wants to buy, the company may reduce the number of shares each person can sell |
Custodian | The financial institution that holds and manages your shares on your behalf |
Open positions | Trades you currently have active in your Leveraged Account |
Short position | When you've sold shares, you don't own, expecting the price to fall |
Closing price | The final price at which your position ends |
Liable to be taken up against | If you have a short position, you must provide shares at the tender price |
What happens to my Investments Account?
How will I know about the tender offer?
If you qualify, our corporate actions team will email you with the terms of the tender offer, important dates, and available options. You will also find an election form on My IG via Live accounts > Corporate actions.
How do I participate?
Step 1 - Log in to My IG using a computer or laptop.
Step 2 - Navigate to My IG > Live accounts > Corporate actions.
Step 3 - Review the event terms and submit your chosen option before the IG deadline.
Step 4 - Modify if needed (optional) — you can change your election anytime before IG's deadline.
What happens if I accept the tender offer?
When you accept the tender offer for cash:
The tender price becomes your closing price
Your shares are blocked after the deadline to prevent duplicate selling
We hand over your election to our custodian for execution
Cash is posted to your account on the announced payment date (or a couple of days after)
What happens to my Leveraged Account?
How will I know about the tender offer?
If you qualify, you will receive an email notification from our corporate actions team and an election form on My IG via Live accounts > Corporate actions.
How do I participate?
Step 1 - Log in to My IG (use a computer or laptop).
Step 2 - Navigate to My IG > Live accounts > Corporate actions.
Step 3 - Review and submit your chosen option before the IG deadline.
Step 4 - Modify if needed (optional) – you can change your election anytime before IG's deadline.
What happens if I accept the tender offer?
When you accept the tender offer for cash:
The tender price becomes your closing price for open positions
Your profit and loss are calculated using the tender price as closure
What if I have a short position?
If you hold a short position, you will be liable to be taken up against. Your position may be closed at the tender price if you do not close out before the deadline.
Frequently Asked Questions
What happens if I don't respond to the tender offer?
What happens if I don't respond to the tender offer?
The default option will be automatically applied. The default option for tender offers is typically No Action. Check your tender offer notification to confirm the default option.
Can I tender only some of my shares?
Can I tender only some of my shares?
Investments Account: Yes. You can tender from 1 share up to all your shares.
Leveraged Account: No. You must tender your entire position or none of it.
Are there any fees for participating?
Are there any fees for participating?
No. Participation is free of charge.
What happens if I miss the IG deadline?
What happens if I miss the IG deadline?
The default option will be automatically applied to your account.
Why is the IG deadline earlier than the company deadline?
Why is the IG deadline earlier than the company deadline?
Our deadline is 24 to 48 hours earlier than the market deadline. We need this time to collect all client elections, forward them to our custodian, and ensure they reach the market before the final deadline.