Great-West Lifeco warns investors about Obatan LLC’s Irish mini-tender offer for shares

TSX: GWO

WINNIPEG, MB, June 20, 2022 /CNW/ – Great-West Lifeco has been notified of an unsolicited mini-tender offer by Obatan LLC, made to residents of Ireland, to purchase up to 50,000 common shares of Great-West Lifeco (TSX: GWO). The unsolicited offer represents a 34.64% discount to the closing price of the common shares on the TSX on June 3, 2022, the last trading day before the launch of the offer. The common shares are not traded on a stock exchange recognized in Ireland.

Great-West Lifeco does not endorse Obatan’s unsolicited offer, has no connection with Obatan or its offer and does not recommend acceptance of the offer. Obatan’s offer was made at a price below the current market price of the shares.

Mini-tender offerings like Obatan’s target less than 5% of a class of outstanding shares and thus avoid many of the investor protections like disclosure and procedural protections applicable to most offerings under Canadian law. Securities regulators have expressed serious concerns about mini-tender offers, including the possibility that investors may bid on such offers without understanding the price of the offer versus the actual market price of their securities. The U.S. Securities and Exchange Commission has noted that some bidders make these offers at below-market prices “in the hope that they will catch investors off guard if investors do not compare the offer price to the current price of the market”.

Great-West Lifeco urges shareholders to obtain current market prices for their shares and to consult their broker or financial adviser before considering Obatan’s offer. According to Obatan’s offering documents, shareholder offers are irrevocable and cannot be withdrawn once filed. Moreover, the offering shareholders do not have the possibility of offering only part of their shares. Obatan has reserved the right to purchase an additional amount of shares in excess of 50,000 common shares, such additional amount not to exceed 2% of the common shares outstanding.

For more information on the risks of mini-tender offers, please see the comments of the Canadian Securities Administrators at https://docs.mbsecurities.ca/msc/notices/en/item/103061/index.do.

Great-West Lifeco requests that a copy of this press release be included in any distribution of materials relating to Obatan’s mini-tender offer for Lifeco common stock.

About Great-West Lifeco Inc.

Great-West Lifeco is an international financial services holding company with interests in life insurance, health insurance, retirement and investment services, asset management and reinsurance. We operate in Canada, United States and Europe under the Canada Life, Empower, Putnam Investments and Irish life.

At the end of 2021, our businesses had approximately 28,000 employees, 215,000 advisor relationships and thousands of channel partners, all serving our more than 33 million customer relationships in these regions.

Great-West Lifeco trades on the Toronto (TSX) under the symbol GWO and is a member of the Power Corporation group of companies. To learn more, visit greatwestlifeco.com.

SOURCE Great-West Lifeco Inc.

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