Rahapakkumine

Rahapakkumine is a term used in corporate finance to describe a take-over offer in which the bidder offers to buy the target company’s shares entirely for cash. It is a form of public or private tender offer aimed at gaining control by providing cash compensation to shareholders who tender their shares.

Typically, an rahapakkumine specifies the cash price per share, the acceptance period, any conditions (such as regulatory clearance or minimum acceptance thresholds), and the terms for allocation if the offer is oversubscribed. If the total number of shares requested exceeds what the bidder can purchase, shares are usually allocated on a pro rata basis. The emphasis is on cash as the form of consideration, rather than stock or other securities.

Regulatory and market context: In Finland, cash tender offers for public companies are governed by the Securities Market Act and related regulations, with disclosure requirements and fairness provisions designed to protect shareholders. Offer documents must be prepared and made publicly available, and the process may be influenced by applicable exchange rules and corporate governance standards. Supervisory authorities oversee compliance with the applicable laws during the offer period.

Impact and considerations: For shareholders, a cash offer provides immediate liquidity and certainty of value but eliminates potential upside from future ownership. For the bidder, a cash offer can simplify execution and funding considerations but requires sufficient liquidity and may attract attention from regulators or rivals. The market response often includes a re-evaluation of the target’s stock price based on the perceived likelihood of the offer succeeding.