THE TENDER OFFER DESCRIBED IN THIS RELEASE HAS NOT YET COMMENCED
AND THIS RELEASE IS NEITHER AN OFFER TO PURCHASE NOR A SOLICITATION
OF AN OFFER TO SELL SECURITIES. NOT FOR RELEASE, PUBLICATION OR
DISTRIBUTION, DIRECTLY OR INDIRECTLY, IN OR INTO, JAPAN, AUSTRALIA,
SOUTH AFRICA, HONG KONG OR IN ANY OTHER JURISDICTION IN WHICH THE
TENDER OFFER WOULD BE PROHIBITED BY APPLICABLE LAW.
As announced on 19 January 2016, Acorda Therapeutics, Inc.
(Nasdaq: ACOR) ("Acorda" or the "Offeror") and Biotie
Therapies Corp. (Nasdaq Helsinki: BTH1V;Nasdaq: BITI)
("Biotie" or the "Company") have on 19 January 2016
entered into a Combination Agreement under which they agree to
combine the operations of Acorda and Biotie. In order to effect the
combination, Acorda will commence on 11 March 2016 a voluntary
public tender offer (the "Tender Offer") to purchase all of
the issued and outstanding shares ("Shares"), American
Depositary Shares ("ADSs"), stock options ("Option
Rights"), share units ("Share Rights") and warrants
("Warrants") in Biotie that are not owned by Biotie or any
of its subsidiaries (such Biotie securities, collectively, the
"Equity Interests").
The Finnish Financial Supervisory Authority has today approved
the tender offer document relating to the Tender Offer (the
"Tender Offer Document"). The acceptance period under the
Tender Offer will commence on 11 March 2016 at 9:30 am (Finnish
time) and expire on 8 April 2016 at 4 pm (Finnish time) (as such
period may be extended, the "Offer Period"). The Offeror
reserves the right to extend the Offer Period from time to time in
accordance with the terms and conditions of the Tender Offer.
The offer price for each Share validly tendered in the Tender
Offer will be EUR 0.2946 in cash, representing a premium of
approximately 95 per cent compared to the closing price of the
Biotie shares on Nasdaq Helsinki Ltd. ("Nasdaq Helsinki") on
18 January 2016, the last trading day on Nasdaq Helsinki preceding
the announcement of the Tender Offer, approximately 87 per cent
compared to the 3 month volume-weighted average trading price on
Nasdaq Helsinki prior to such announcement, and approximately 72
per cent compared to the 6 month volume-weighted average trading
price on Nasdaq Helsinki prior to such announcement.
The offer price for each outstanding ADS validly tendered in the
Tender Offer will be EUR 23.5680 in cash, payable in the equivalent
amount of U.S. dollars determined as near to the payment date as
reasonably practicable based on the U.S. dollar spot rate against
the euro exchange rate on the nearest practicable day to the
closing date of the Tender Offer. Using the 5-day average of the
USD to EUR exchange rate prior to the announcement of the Tender
Offer, this would be equivalent to 25.60 USD per ADS in cash and
represent a premium of approximately 94 percent compared to the
closing price of the Biotie ADSs on the Nasdaq Global Select Market
("Nasdaq US") on 15 January 2016, the last trading day on
the Nasdaq US preceding the announcement of the Tender Offer.
The offer prices for outstanding Option Rights validly tendered
in the Tender Offer will be:
(i). EUR 0.2846 in cash for each 2011 Option Right;
(ii). EUR 0.2846 in cash for each 2014 Option Right; (iii).
EUR 0.1326 in cash for each 2016 Option Right payable, at the
option of the holder, in euros or the equivalent amount of U.S.
dollars determined as near to the payment date as reasonably
practicable based on the U.S. dollar spot rate against the euro
exchange rate on the nearest practicable day to the closing date of
the Tender Offer; (iv). EUR 0.2032 in cash for each Swiss
Option Right with a per Share subscription price of CHF 0.10;
(v). EUR 0.1026 in cash for each Swiss Option Right with a
per Share subscription price of CHF 0.21; (vi). EUR 0.0386
in cash for each Swiss Option Right with a per Share subscription
price of CHF 0.28; (vii). EUR 0.0112 in cash for each Swiss
Option Right with a per Share subscription price of CHF 0.31; and,
(viii). EUR 0.0100 in cash for each other Swiss Option
Right.
The offer prices for outstanding Share Rights validly tendered
in the Tender Offer are (i) EUR 0.2946 in cash for each 2011 Share
Right, and (ii) EUR 0.2854 in cash for each 2014 Share Right,
payable, in each case, at the option of the holder, in euros or the
equivalent amount of U.S. dollars determined as near to the payment
date as reasonably practicable based on the U.S. dollar spot rate
against the euro exchange rate on the nearest practicable day to
the applicable closing date.
The offer price for each outstanding Warrant validly tendered in
the Tender Offer is EUR 0.1664 in cash.
Certain Biotie shareholders and ADS holders representing in
total approximately 65 percent of the outstanding shares and votes
in Biotie on a fully diluted basis have subject to certain
customary conditions irrevocably undertaken to accept the Tender
Offer, including all the holders of Biotie Warrants and members of
the management team of Biotie.
After careful consideration, the board of directors of the
Company has determined that the Combination Agreement and the
transactions contemplated thereby, including the Tender Offer, are
advisable, fair to and in the best interests of the Company and the
holders of the Equity Interests. Accordingly, the board of
directors of the Company has recommended that the holders of Equity
Interests accept the Tender Offer and tender their Equity Interests
to the Offeror in the Tender Offer.
In connection with such evaluation, the Board of Directors of
Biotie considered numerous factors, including the opinion of
Guggenheim Securities, LLC, dated January 19, 2016, to the Board of
Directors of Biotie as to the fairness, from a financial point of
view and as of such date, of the EUR 0.2946 per Share cash
consideration to be received in the Tender Offer by the holders of
Shares and ADSs (other than Acorda and its affiliates), which
opinion was based on the matters considered, the procedures
followed, the assumptions made and various limitations of and
qualifications to the review undertaken as more fully described
therein.
Upon commencement of the Tender Offer, the Tender Offer Document
will be available in Finnish at the branch offices of the
cooperative bank belonging to the OP Financial Group or Helsinki OP
Bank Plc and at Nasdaq Helsinki, Fabianinkatu 14, FI-00130
Helsinki, Finland. The Tender Offer Document will also be available
in Finnish and English at the offices of the Offeror at Office of
the Corporate Secretary, 420 Saw Mill River Road, Ardsley, NY,
10502 and on the internet at www.op.fi/merkinta,
http://ir.acorda.com/investors/Biotie-Therapies-Tender-Offer/default.aspx
and www.biotie.com/sijoittajat.
After commencement of the Tender Offer, most Finnish book-entry
account operators will send a notification of the Tender Offer,
including instructions and the acceptance form for Shares, to their
customers who are registered as shareholders in the shareholders'
register of the Company maintained by Euroclear Finland Ltd.
("Euroclear"). Shareholders who do not receive such
notification from their account operator or asset manager can
contact any branch office of the cooperative banks belonging to the
OP Financial Group or Helsinki OP Bank Plc where such shareholders
will receive necessary information.
After commencement of the Tender Offer, a shareholder in the
Company who is registered as a shareholder in the shareholders'
register of the Company and who wishes to accept the Tender Offer
shall submit a properly completed and duly executed acceptance form
to the account operator managing the shareholder's book-entry
account in accordance with its instructions and within the time
limit set by the account operator, which may be prior to the expiry
of the Offer Period, or, if such account operator does not accept
acceptance forms (e.g. Euroclear), such shareholder shall contact
any branch office of the cooperative banks belonging to the OP
Financial Group or Helsinki OP Bank Plc to receive necessary
information. The acceptance form will be available upon
commencement of the Tender Offer and must be submitted so that it
is received on or before the expiry of the Offer Period, subject to
and in accordance with the instructions of the relevant account
operator.
Holders of ADSs may tender their ADSs during the Offer Period by
taking, or causing to be taken, the necessary actions described in
the Tender Offer Document on or before the expiry of the Offer
Period.
The acceptance procedure for Option Rights, Share Rights and
Warrants depends on whether such Equity Interests are in book-entry
form or certificated. All 2011 Option Rights, the 2014 Option
Rights in the 2014A tranche and all Warrants ("Uncertificated
Equity Instruments") are registered in the Finnish book-entry
securities system. The 2014 Option Rights in the 2014B, 2014C,
2014D and 2014M tranches, all 2016 Option Rights, all Swiss Option
Rights, all 2011 Share Rights and all 2014 Share Rights
("Certificated Equity Instruments") are certificated and
have not been registered in the Finnish book-entry securities
system.
After commencement of the Tender Offer, most of the Finnish
book-entry account operators will send a notification of the Tender
Offer, including instructions and an acceptance form for
Uncertificated Equity Instruments to their customers who are
holders of Uncertificated Equity Instruments. A holder of
Uncertificated Equity Instruments who wishes to accept the Tender
Offer shall submit a properly completed and duly executed
acceptance form for Uncertificated Equity Instruments to the
account operator managing the holder's book-entry account in
accordance with its instructions and within the time limit set by
the account operator, which may be prior to the expiry of the Offer
Period, or, if such account operator does not accept acceptance
forms (e.g. Euroclear), such holder of Uncertificated Equity
Instruments shall contact any branch office of the cooperative
banks belonging to the OP Financial Group or Helsinki OP Bank Plc
to receive necessary information. The acceptance form will be
available upon commencement of the Tender Offer and must be
submitted so that it is received before expiry of the Offer Period,
subject to and in accordance with the instructions of the relevant
account operator.
A holder of Certificated Equity Instruments may only accept the
Tender Offer in respect of Certificated Equity Instruments
registered in his or her name in the Company's register for such
Certificated Equity Instruments on the date of acceptance of the
Tender Offer. A holder of Certificated Equity Instruments must have
a cash account in a financial institution operating in Finland or
abroad. After commencement of the Tender Offer, Pohjola Bank will
send a notification of the Tender Offer, including instructions and
an acceptance form for Certificated Equity Instruments, to all
holders of Certificated Equity Instruments who are registered
during the Offer Period in the registry of holders of Certificated
Equity Instruments held by the Company.
Holders of Certificated Equity Instruments or Uncertificated
Equity Instruments who do not receive such information from their
account operator, asset manager or Pohjola Bank can contact the
call service of OP Financial Group at (+358) (0) 100 0500 for
assistance.
A shareholder or holder of Uncertificated Equity Instruments in
the Company whose Shares or Uncertificated Equity Instruments are
registered in the name of a nominee and who wishes to accept the
Tender Offer shall effect such acceptance in accordance with the
nominee's instructions.
The completion of the Tender Offer is subject to the
satisfaction of the conditions described under Section 4.2 of the
Tender Offer Document. The Tender Offer is not subject to a
financing condition. The Offeror reserves the right to waive any
conditions to completion of the Tender Offer.
The Offeror will announce the preliminary result of the Tender
Offer on the first (1st) Finnish banking day following the expiry
of the Offer Period or, if applicable, the extended Offer Period
and will announce the final result on or about the third (3rd)
Finnish banking day following the expiry of the Offer Period or, if
applicable, the extended Offer Period. The announcement of the
preliminary result will confirm (i) the initial percentage of the
Shares and Option Rights that have been validly tendered and not
properly withdrawn and (ii) whether the Offeror will complete the
Tender Offer and accept the Equity Interests tendered into the
Tender Offer.
The detailed terms and conditions that will apply upon
commencement of the Tender Offer have been enclosed in their
entirety as an annex to this release (Annex 1).
Lazard, MTS Health Partners and J.P. Morgan Securities LLC are
serving as financial advisors, and Kirkland & Ellis LLP,
Roschier Attorneys Ltd., Covington & Burling LLP and Jones Day
LLP are serving as legal advisors to Acorda in connection with the
tender offer. Guggenheim Securities is serving as Biotie Therapies'
financial advisor, and Davis Polk & Wardwell LLP and Hannes
Snellman Attorneys Ltd. are serving as Biotie's legal advisors.
Pohjola Capital Markets Financing department of Pohjola Bank plc
acts as the arranger of the Tender Offer.
About Acorda Therapeutics
Founded in 1995, Acorda Therapeutics is a biotechnology company
focused on developing therapies that restore function and improve
the lives of people with neurological disorders.
Acorda has an industry leading pipeline of novel neurological
therapies addressing a range of disorders, including Parkinson's
disease, epilepsy, post-stroke walking deficits, migraine, and
multiple sclerosis. Acorda markets three FDA-approved therapies,
including AMPYRA® (dalfampridine) Extended Release Tablets, 10
mg.
For more information, please visit www.acorda.com.
About Biotie Therapies
Biotie is a specialized drug development company focused on
products for neurodegenerative and psychiatric disorders. Biotie's
development has delivered Selincro (nalmefene) for alcohol
dependence, which received European marketing authorization in 2013
and is currently being rolled out across Europe by partner H.
Lundbeck A/S. The current development products include tozadenant
for Parkinson's disease, which is in Phase 3 development, and two
additional compounds which are in Phase 2 development for cognitive
disorders including Parkinson's disease dementia, and primary
sclerosing cholangitis (PSC), a rare fibrotic disease of the
liver.
For more information, please visit www.biotie.com.
Forward-Looking Statements
This press release includes forward-looking statements. All
statements, other than statements of historical facts, regarding
management's expectations, beliefs, goals, plans or prospects
should be considered forward-looking. These statements are subject
to risks and uncertainties that could cause actual results to
differ materially, including: the ability to complete the Biotie
transaction on a timely basis or at all; the ability to realize the
benefits anticipated from the Biotie and Civitas transactions,
among other reasons because acquired development programs are
generally subject to all the risks inherent in the drug development
process and our knowledge of the risks specifically relevant to
acquired programs generally improves over time; the ability to
successfully integrate Biotie's operations and Civitas' operations,
respectively, into our operations; we may need to raise additional
funds to finance our expanded operations and may not be able to do
so on acceptable terms; our ability to successfully market and sell
Ampyra in the U.S.; third party payers (including governmental
agencies) may not reimburse for the use of Ampyra or our other
products at acceptable rates or at all and may impose restrictive
prior authorization requirements that limit or block prescriptions;
the risk of unfavorable results from future studies of Ampyra or
from our other research and development programs, including
CVT-301, Plumiaz, or any other acquired or in-licensed programs; we
may not be able to complete development of, obtain regulatory
approval for, or successfully market CVT-301, Plumiaz, any other
products under development, or the products that we would acquire
if we complete the Biotie transaction; the occurrence of adverse
safety events with our products; delays in obtaining or failure to
obtain and maintain regulatory approval of or to successfully
market Fampyra outside of the U.S. and our dependence on our
collaborator Biogen in connection therewith; competition; failure
to protect our intellectual property, to defend against the
intellectual property claims of others or to obtain third party
intellectual property licenses needed for the commercialization of
our products; and failure to comply with regulatory requirements
could result in adverse action by regulatory agencies.
Additional Information
The Tender Offer described in this release has not yet
commenced, and this release is neither an offer to purchase nor a
solicitation of an offer to sell securities. On the date the Tender
Offer is commenced, we will file with the Securities and Exchange
Commission (the "SEC") a tender offer statement on Schedule TO.
Investors and holders of Biotie equity securities are strongly
advised to read the tender offer statement, including the offer to
purchase, letter of transmittal, acceptance forms and other related
tender offer documents and the related solicitation/recommendation
statement on Schedule 14D-9 that will be filed by Biotie with the
SEC, because they will contain important information. These
documents will be available at no charge on the SEC's website at
www.sec.gov upon the commencement of the Tender Offer. In addition,
a copy of the Tender Offer Document and related documents may be
obtained upon commencement of the Tender Offer free of charge by
directing a request to us at www.acorda.com or Office of the
Corporate Secretary, 420 Saw Mill River Road, Ardsley, New York
10502.
In addition to the Schedule TO, we file annual, quarterly and
special reports, proxy statements and other information with the
SEC. You may read and copy any reports, statements or other
information filed by us at the SEC public reference room at 100 F
Street, N.E., Washington, D.C. 20549. Please call the SEC at
1-800-SEC-0330 for further information on the public reference
room. Our filings with the SEC are also available to the public
from commercial document-retrieval services and at the website
maintained by the SEC at www.sec.gov.
THE TENDER OFFER WILL NOT BE MADE DIRECTLY OR INDIRECTLY IN
ANY JURISDICTION WHERE EITHER AN OFFER OR PARTICIPATION THEREIN IS
PROHIBITED BY APPLICABLE LAW OR WHERE ANY TENDER OFFER DOCUMENT OR
REGISTRATION OR OTHER REQUIREMENTS WOULD APPLY IN ADDITION TO THOSE
UNDERTAKEN IN FINLAND AND THE UNITED STATES.
IN ADDITION, THE TENDER OFFER DOCUMENT, THE RELATED DOCUMENTS
AND THIS RELEASE WILL NOT AND MAY NOT BE DISTRIBUTED, FORWARDED OR
TRANSMITTED INTO OR FROM ANY JURISDICTION WHERE PROHIBITED BY
APPLICABLE LAW. IN PARTICULAR, THE TENDER OFFER IS NOT BEING MADE,
DIRECTLY OR INDIRECTLY, IN OR INTO, CANADA, JAPAN, AUSTRALIA, SOUTH
AFRICA OR HONG KONG. THE TENDER OFFER CANNOT BE ACCEPTED BY ANY
SUCH USE, MEANS OR INSTRUMENTALITY OR FROM WITHIN CANADA, JAPAN,
AUSTRALIA, SOUTH AFRICA OR HONG KONG.
This release is for informational purposes only and does not
constitute a tender offer document or an offer, solicitation of an
offer or an invitation to a sales offer. Potential investors in
Finland shall accept the Tender Offer only on the basis of the
information provided in the tender offer document once approved by
the Finnish Financial Supervisory Authority and related
materials.
THE TENDER OFFER DESCRIBED IN THIS RELEASE HAS NOT YET
COMMENCED AND THIS RELEASE IS NEITHER AN OFFER TO PURCHASE NOR A
SOLICITATION OF AN OFFER TO SELL SECURITIES.
Annex 1:
1 TERMS AND CONDITIONS OF THE TENDER OFFER
1.1 Terms of the Tender Offer
Object of the Tender Offer. Through the Tender Offer, the
Offeror offers to acquire all of the Equity Interests in the
Company that are not held by the Company or any of its
subsidiaries, on the terms and subject to the conditions set forth
below.
According to the terms and conditions of the 2011 Option Rights,
2014 Option Rights and 2016 Option Rights as well as the 2011 Share
Rights and 2014 Share Rights, such Option Rights and Share Rights
are not freely transferable. The Board of Directors of the Company
may, however, permit the transfer of the Option Rights and Share
Rights before such date, and, under the Combination Agreement, the
Board of Directors of the Company has undertaken to grant such
permission to the holders of Option Rights and Share Rights to
transfer their Option Rights and Share Rights to the Offeror by
accepting the Tender Offer and tendering the Option Rights into the
Tender Offer in accordance with the terms and conditions of the
Tender Offer. The Board of Directors of the Company has granted the
permission to transfer the Option Rights and Share Rights in
connection with the Tender Offer.
According to the terms and conditions of the Swiss Option
Rights, such Option Rights are not freely transferable without the
consent of the board of directors of Biotie Therapies AG, a
wholly-owned subsidiary of Biotie. The Board of Directors of the
Company has undertaken to cause Biotie Therapies AG to grant such
consent to holders of the Swiss Option Rights who accept the Tender
Offer and tender their Swiss Option Rights in accordance with the
terms and conditions of the Tender Offer. The Board of Directors of
Biotie Therapies AG has granted the consent in question.
Offer Price. The offer price for each outstanding Share validly
tendered in accordance with the terms and conditions of the Tender
Offer is EUR 0.2946 in cash (the "Share Offer
Price").
The offer price for each outstanding ADS validly tendered in
accordance with the terms and conditions of the Tender Offer is EUR
23.5680 in cash (the "ADS Offer
Price"), payable in the equivalent amount of U.S. dollars
determined as near to the payment date as reasonably practicable
based on the U.S. dollar spot rate against the euro exchange rate
on the nearest practicable day to the day when the Tender Offer is
consummated and all Equity Interests validly tendered and not
withdrawn have been transferred to the Offeror (the date of each
such transfer, a “Closing Date”). For
the avoidance of doubt, holders of ADSs who validly tender their
ADSs in accordance with the terms and conditions of the Tender
Offer will not be entitled to any consideration for their ADSs
(including the Shares underlying such ADSs) other than the ADS
Offer Price.
The offer prices for outstanding Option Rights validly tendered
in accordance with the terms and conditions of the Tender Offer are
as follows:
(i) EUR 0.2846 in cash for each 2011 Option Right;
(ii) EUR 0.2846 in cash for each 2014 Option Right;
(iii) EUR 0.1326 in cash for each 2016 Option Right; (iv)
EUR 0.2032 in cash for each Swiss Option Right with a per Share
subscription price of CHF 0.10; (v) EUR 0.1026 in cash for
each Swiss Option Right with a per Share subscription price of CHF
0.21; (vi) EUR 0.0386 in cash for each Swiss Option Right
with a per Share subscription price of CHF 0.28; (vii) EUR
0.0112 in cash for each Swiss Option Right with a per Share
subscription price of CHF 0.31; and (viii)
EUR 0.0100 in cash for each other Swiss
option right.
(The Option Right offer prices set forth in items (i) – (viii)
above jointly referred to as the "Option
Right Offer Price".)
The offer prices for outstanding Share Rights validly tendered
in accordance with the terms and conditions of the Tender Offer are
as follows:
(i) EUR 0.2946 in cash for each 2011
Share Right; and (ii) EUR 0.2854 in cash for each 2014 Share
Right.
(The Share Right offer prices set forth in items (i) – (ii)
above jointly referred to as the "Share Right
Offer Price".)
The offer price for each outstanding Warrant validly tendered in
accordance with the terms and conditions of the Tender Offer is EUR
0.1664 in cash (the "Warrant Offer
Price").
The offer price payable to holders of 2016 Option Rights, 2011
Share Rights and 2014 Share Rights will, at the option of the
holder, be payable in euros or the equivalent amount of U.S.
dollars determined as near to the payment date as reasonably
practicable based on the U.S. dollar spot rate against the euro
exchange rate on the nearest practicable day to the applicable
Closing Date.
The Share Offer Price, ADS Offer Price, Option Right Offer
Price, Share Right Offer Price and Warrant Offer Price are
collectively referred to as the "Offer
Price".
The Offer Price will be paid in each case without interest and
less any applicable withholding taxes (in the United States, see
Section 1.13 – "Material United States Federal Income Tax
Consequences").
Offer Period. The Offer Period commences on 11 March 2016 at
9:30 a.m. (Finnish time) / 2:30 a.m. (New York City time) and
expires on 8 April 2016 at 4:00 p.m. (Finnish time) / 9:00 a.m.
(New York City time), unless the Offer Period is extended as set
forth below.
Subject to the following paragraph, if at the scheduled
expiration time of the Offer Period any of the Conditions to
Completion are not satisfied, the Offeror will extend the Offer
Period for additional periods not exceeding two (2) weeks each in
accordance with these terms and conditions and, in each case,
subject to compliance with applicable Finnish and United States
legal requirements.
The maximum duration of the Offer Period is ten (10) weeks as
required by Finnish law. However, if any of the Conditions to
Completion has not been fulfilled due to a particular obstacle, the
Offeror may extend the Offer Period beyond ten (10) weeks until
such obstacle has been removed and until all Conditions to
Completion have been satisfied. In no event is the Offeror required
to extend the Tender Offer beyond June 19, 2016.
U.S. tender offer rules require that the Offeror extend the
Tender Offer if the Offeror intends to materially change the Tender
Offer within ten U.S. business days of the then-scheduled
Expiration Date, so that the Tender Offer will expire no less than
ten U.S. business days after the publication of the material
change.
The Offeror reserves the right to initiate a Subsequent Offer
Period in connection with the announcement of the final results
with respect to the Offer Period if the Tender Offer shall have
been announced to be unconditional at that time (such subsequent
offer period, the “Subsequent Offer
Period”). See Section 1.11—"Subsequent Offer Period."
If the Offer Period is extended the Offeror will make a public
announcement of the extension by a stock exchange release at or
before 4:00 p.m. (Finnish time) / 9:00 a.m. (New York City time) on
11 April 2016. The Offeror will give notice of any further
extension of the Tender Offer, at the latest on the first Finnish
banking day following what would have been, but for such extension,
the Expiration Date or end of any Subsequent Offer Period, as
applicable, at or before 4:00 p.m. (Finnish time) / 9:00 a.m. (New
York City time).
1.2 Conditions to Completion of the Tender
Offer
The obligation of the Offeror to accept for payment the Equity
Interests validly tendered and not withdrawn during the Offer
Period will be subject to the fulfilment or, to the extent
permitted by applicable law, waiver by the Offeror of the following
conditions on or prior to the date of the Offeror's announcement of
the preliminary result with respect to the Offer Period
("Conditions to Completion"):
(a) the valid tender of outstanding Shares (including
outstanding Shares represented by validly tendered ADSs and validly
tendered Warrants) representing, together with any outstanding
Shares (including outstanding Shares represented by ADSs and
Warrants) otherwise acquired by the Offeror, more than 90 percent
of the issued and outstanding Shares and voting rights of the
Company, calculated on a fully diluted basis and otherwise in
accordance with Chapter 18 Section 1 of the Finnish Limited
Liability Companies Act (the "Minimum Condition") (as used in this
paragraph, "fully diluted basis" means an equation in which the
numerator represents the aggregate number of outstanding Shares
(including outstanding Shares represented by ADSs) and Warrants
that have been validly tendered or otherwise acquired by the
Offeror and the denominator represents the aggregate number of all
outstanding Shares (including outstanding Shares represented by
ADSs) and Warrants, as well as Shares issuable upon the vesting and
exercise of those Option Rights and Share Rights that have not been
validly tendered into the Tender Offer or otherwise acquired by the
Offeror); (b) the expiration or termination of any
applicable waiting period under the Hart-Scott-Rodino Act (as
discussed in Section 1.16—"Certain Legal Matters; Regulatory
Approvals; Description of SEC Relief," such waiting period expired
on February 16, 2016); (c) no Material Adverse Effect (as
defined below) having occurred in the Company after January 19,
2016; (d) the Offeror not, after January 19, 2016, having
received information previously undisclosed to it that describes a
Material Adverse Effect to the Company that occurred prior to
January 19, 2016; (e) no information made public by the
Company or disclosed by the Company to the Offeror being materially
inaccurate, incomplete, or misleading, and the Company not having
failed to make public any information that should have been made
public by it under applicable laws, including without limitation
the rules of Nasdaq Helsinki and Nasdaq US, provided that, in each
case, the information made public, disclosed or not disclosed or
the failure to disclose information constitutes a Material Adverse
Effect to the Company; (f) no court or regulatory authority
of competent jurisdiction (including without limitation the FSA or
the SEC) having given an order or issued any regulatory action
preventing or enjoining the completion of the Tender Offer;
(g) the Board of Directors of the Company having issued its
recommendation for the Tender Offer and the recommendation
remaining in force and not being modified or changed in a manner
detrimental to the Offeror; and (h) the Combination
Agreement not having been terminated and remaining in force and no
event having occurred that, with the passage of time, would give
the Offeror the right to terminate the Combination Agreement under
specified sections of the Combination Agreement that give the
Offeror the right to terminate the Combination Agreement in
response to a breach of the agreement by the Company.
Fulfillment of the Conditions to Completion, including
fulfillment of the Minimum Condition, will be determined on the
next Finnish banking day after the Expiration Date, based on the
preliminary results with respect to the Offer Period then
available. Such results may be subject to change based on a
finalization count, which will be available on the third (3rd)
Finnish banking day after the Expiration Date. However, no such
change will impact fulfillment of the Conditions to Completion.
"Material Adverse Effect"
means
(a) any divestment or reorganization of any material part or
asset of the Company or its subsidiaries or any recapitalization
thereof; or (b) any event, condition, circumstance,
development, occurrence, change, effect or fact (any such item an
"Effect") that individually or in the aggregate, has, results in or
would reasonably be expected to have or result in a material
adverse effect on the (i) business, assets, condition (financial or
otherwise) or results of operations, of the Company and its
subsidiaries, taken as a whole, excluding any Effect resulting from
(A) changes in the financial or securities markets, or economic,
political or regulatory conditions generally, except to the extent
such change has a disproportionate effect on the Company relative
to other industry participants, (B) changes in IFRS or changes in
the regulatory accounting requirements applicable to any industry
in which the Company and its subsidiaries operate, except to the
extent such change has a disproportionate effect on the Company
relative to other industry participants, (C) changes (including
changes of applicable law) or conditions generally affecting the
industry in which the Company and its subsidiaries operate, except
to the extent such change has a disproportionate effect on the
Company relative to other industry participants, (D) acts of war,
sabotage or terrorism or natural disasters, except to the extent
such change has a disproportionate effect on the Company relative
to other industry participants, (E) the announcement or pendency of
the transactions contemplated by, or the performance of obligations
under, the Combination Agreement, including but not limited to any
loss of or change in relationships between the Company or any of
its subsidiaries and any customer, supplier, distributor, business
partner, employee, similar party, governmental authority or any
other persons and any shareholder or derivative litigation relating
to the execution and performance of the Combination Agreement or
the announcement or the anticipated consummation of the
transactions contemplated thereby (it being understood that this
clause (E) shall not apply with respect to a representation or
warranty contained in the Combination Agreement to the extent that
the purpose of such representation or warranty is to address the
consequences resulting from the execution and delivery of the
Combination Agreement or the consummation, announcement or pendency
of the transactions contemplated by, or the performance of
obligations under, the Combination Agreement), (F) any failure by
the Company and its subsidiaries to meet any internal, published or
third-party budgets, projections, forecasts or predictions of
financial performance for any period (provided that the exception
in this clause (F) shall not prevent or otherwise affect a
determination that any Effect underlying such failure has resulted
in or contributed to a Material Adverse Effect), (G) any action
taken (or omitted to be taken) at the express request of the
Offeror, (H) any action taken by the Company or any of its
subsidiaries that is required or expressly contemplated by the
Combination Agreement, (I) the results of any pre-clinical or
clinical testing sponsored by the Company, any of its competitors
or any of their respective collaboration partners or the increased
incidence or severity of any previously identified side effects,
adverse events or safety observations, or reports of new side
effects, adverse events or safety observations, with respect to any
products or product candidates of the Company or any of its
competitors (but not, in each case, the underlying cause of such
results, side effects, adverse events or safety observations to the
extent such cause related to any Specified Event (as defined
below)) (and, it being understood that this clause (I) shall not
apply with respect to a representation or warranty contained in the
Combination Agreement to the extent that both (A) the purpose of
such representation or warranty is to address the conduct of
pre-clinical or clinical testing sponsored by the Company or any of
its collaboration partners or any products or product candidates of
the Company and (B) as January 19, 2016, to the knowledge of the
Company, the Effect that would otherwise be excluded by this clause
(I) has occurred), (J) the effect of the continued incurrence by
the Company of net losses (provided that the exception in this
clause (J) shall not prevent or otherwise affect a determination
that any Effect underlying such change has resulted in or
contributed to a Material Adverse Effect), or (K) a change in the
price and/or trading volume of the Shares or ADSs on Nasdaq
Helsinki, Nasdaq US or any other exchange or market on which they
trade or are quoted for purchase and sale (provided that the
exception in this clause (K) shall not prevent or otherwise affect
a determination that any Effect underlying such change has resulted
in or contributed to a Material Adverse Effect), or (ii) ability of
the Company to consummate the transactions contemplated hereby.
"Specified Event" means an event
where the Company, U.S. Food and Drug Administration, European
Medicines Agency or any Institutional Review Board or Data Safety
Monitoring Board terminates or suspends, or recommends that the
sponsor terminates or suspends, a tozadenant clinical trial for
safety reasons.
The Offeror reserves the right to waive any of the Conditions to
Completion that have not been satisfied, subject to compliance with
applicable law (including U.S. tender offer rulers that require the
Tender Offer remain open for at least five U.S. business days from
the date of any waiver of a material Condition to Completion).
The Offeror can only invoke a condition set forth in the
Conditions to Completion to cause the withdrawal of the Tender
Offer if the nonfulfillment of the condition has a material impact
on the Offeror from the perspective of the anticipated acquisition
as referred to in the Finnish Financial Supervisory Authority's
recommendations and guidelines 9/2013 (Takeover bid and the
obligation to launch a bid).
The Offeror will announce the fulfilment of the Conditions to
Completion or the decision to waive any of the Conditions to
Completion that have not been satisfied by a stock exchange release
on the first business day following the Expiration Date at or
before 4 pm (Finnish time)/ 9 am (New York time).
1.3 Obligation to Increase the Tender Offer or to Pay
Compensation
If the Offeror or any party referred to in Chapter 11, Section 5
of the Finnish Securities Market Act acquires, before the expiry of
the Offer Period, any Equity Interests at a higher price than the
applicable Offer Price or otherwise on terms that are more
favorable than those of the Tender Offer, the Offeror must
according to Chapter 11, Section 25 of the Finnish Securities
Market Act amend the terms and conditions of the Tender Offer to
correspond to such acquisition on more favorable terms (obligation
to increase the offer). The Offeror shall then, without delay, make
public the triggering of such obligation to increase the offer and
pay to all holders of Equity Interests accepted for payment
pursuant to the Tender Offer, whether or not such Equity Interests
were tendered prior to such increase, the difference between the
higher price and the price initially offered in the Tender
Offer.
If the Offeror or any party referred to in Chapter 11, Section 5
of the Finnish Securities Market Act acquires, during the nine (9)
months following the expiry of the Offer Period, any Equity
Interests at a higher price than the applicable Offer Price or
otherwise on terms that are more favorable than those of the Tender
Offer, the Offeror must according to Chapter 11, Section 25 of the
Finnish Securities Market Act compensate those holders of
securities who have accepted the Tender Offer for the amount equal
to the difference between such acquisition on more favorable terms
and the consideration offered in the Tender Offer (obligation to
compensate). The Offeror shall then, without delay, make public the
triggering of such obligation to compensate and pay the difference
between the acquisition on more favorable terms and the
consideration offered in the Tender Offer within one month after
the triggering of the obligation to compensate to the holders of
securities who have accepted the Tender Offer. According to Chapter
11, Section 25, Subsection 5 of the Finnish Securities Market Act,
such obligation to compensate will not, however, be triggered in
case the payment of a higher price than the applicable Offer Price
is based on an arbitral award pursuant to the Finnish Companies
Act, including an award issued in a Subsequent Compulsory
Redemption, provided that the Offeror or any party referred to in
Chapter 11, Section 5 of the Finnish Securities Market Act has not
offered to acquire Equity Interests on terms that are more
favorable than those of the Tender Offer before or during the
arbitral proceedings.
Prior to the expiration of the Tender Offer, the Offeror, the
managers of the Offeror and their respective affiliates are
prohibited by Rule 14e-5 under the U.S. Securities Exchange Act of
1934, as amended (the “Exchange Act”),
from directly or indirectly purchasing or arranging to purchase any
of the Equity Interests outside of the Tender Offer, except
pursuant to certain limited exceptions provided therein. Following
the expiration of the Tender Offer, and subject to applicable law,
the Offeror expressly reserves the absolute right, in its sole
discretion from time to time in the future, to purchase any Equity
Interests, whether or not any Equity Interests are purchased
pursuant to the Tender Offer, through open market purchases,
privately negotiated transactions, tender offers, exchange offers
or otherwise, upon such terms and at such prices as it may
determine, which may be more or less than the price to be paid
pursuant to the Tender Offer and could be for cash or other
consideration.
1.4 Acceptance Procedure of the Tender Offer
Holders of Equity Interests may only accept the Tender Offer
unconditionally (subject to the withdrawal rights set forth in
Section 1.5—"Withdrawal Rights"). Acceptance given during the Offer
Period is effective through the Expiration Date.
Shares
The Tender Offer must be accepted separately for each book-entry
account. A shareholder of the Company must have a cash account in a
financial institution operating in Finland or abroad. A shareholder
may only accept the Tender Offer for every Share on the book-entry
account specified in the acceptance forms and attached instructions
(such acceptance forms and attached instructions, the “Acceptance Forms”) for Shares on the date of the
execution of the sale and purchase of the Shares and partial
acceptances of the Tender Offer will require separate book-entry
accounts.
Most Finnish book-entry account operators will send a
notification of the Tender Offer, including instructions and the
Acceptance Form for Shares to their customers who are registered as
shareholders in the shareholders' register of the Company
maintained by Euroclear Finland Ltd. ("Euroclear"). Shareholders who do not receive such
notification from their account operator or asset manager can
contact any branch office of the cooperative banks belonging to the
OP Financial Group or Helsinki OP Bank Plc where such shareholders
will receive necessary information and instructions on how to give
their acceptance.
A shareholder in the Company whose Shares are registered in the
name of a nominee and who wishes to accept the Tender Offer shall
effect such acceptance in accordance with the nominee's
instructions.
Pledged Shares may only be tendered with the consent of the
relevant pledgee. The obtaining of such consent shall be the
responsibility of the relevant shareholder in the Company. The
consent by the pledgee shall be delivered in writing to the account
operator.
A shareholder in the Company who is registered as a shareholder
in the shareholders' register of the Company and who wishes to
accept the Tender Offer shall submit a properly completed and duly
executed Acceptance Form to the account operator managing the
shareholder's book-entry account in accordance with its
instructions and within the time limit set by the account operator,
which may be prior to the expiry of the Offer Period, or, if such
account operator does not accept Acceptance Forms (e.g. Euroclear),
such shareholder shall contact any branch office of the cooperative
banks belonging to the OP Financial Group or Helsinki OP Bank Plc
to give his/her acceptance to tender the Shares. The Acceptance
Form shall be submitted so that it is received on or before the
Expiration Date, subject to and in accordance with the instructions
of the relevant account operator. In the event of a Subsequent
Offer Period, the Acceptance Form shall be submitted so that it is
received during the Subsequent Offer Period, subject to and in
accordance with the instructions of the relevant account
operator.
The method of delivery of the Acceptance Form for Shares is at
the shareholder's option and risk, and the delivery will be deemed
made only when actually received by such account operator or
cooperative bank belonging to the OP Financial Group or Helsinki OP
Bank Plc. The Offeror may also reject any partial tender of the
Shares. The Offeror reserves the right to reject any acceptance
given in an incorrect or incomplete manner.
By accepting the Tender Offer, the shareholders of the Company
authorize Pohjola Bank or a party authorized by Pohjola Bank or the
account operator managing the shareholder's book-entry account to
enter a transfer restriction or a sales reservation on the
shareholder's book-entry account after the shareholder has
delivered their acceptance of the Tender Offer. In addition, the
shareholders who have accepted the Tender Offer authorize Pohjola
Bank or a party authorized by Pohjola Bank or the account operator
managing the shareholder's book-entry account to perform the
necessary entries and to take all other actions required to
technically execute the Tender Offer and to sell all the Shares
owned by such shareholder at the time of the execution trades under
the Tender Offer to the Offeror in accordance with the terms and
conditions of the Tender Offer.
A shareholder that has validly accepted the Tender Offer and
that has not properly withdrawn its acceptance in accordance with
the terms and conditions of the Tender Offer may not sell or
otherwise dispose of its tendered Shares. A transfer restriction in
respect of the Shares will be registered in the relevant book-entry
account after a shareholder has submitted the Acceptance Form for
the Tender Offer. If the Tender Offer is not completed or if the
tender is properly withdrawn by the shareholder in accordance with
the terms and conditions of the Tender Offer, the transfer
restriction registered on the tendered Shares in the relevant
book-entry account will be removed as soon as possible and within
approximately three (3) Finnish banking days following the
announcement that the Tender Offer will not be completed or the
receipt of a notice of withdrawal in accordance with the terms and
conditions of the Tender Offer.
ADSs
Holders of ADSs may tender their ADSs by taking, or causing to
be taken, the following actions on or prior to the Expiration Date
or end of any Subsequent Offer Period, as applicable:
- a book-entry transfer of their ADSs
into the account of Computershare Trust Company, N.A., in its
capacity as depositary for the Tender Offer (the “Depositary”) at The Depository Trust Company
(“DTC”), pursuant to the procedures
described below;
- the delivery to the Depositary at one
of its addresses set forth on the back cover of this Tender Offer
Document of either:
(i) an Agent's Message (as defined below);
or
(ii) a properly completed and duly executed
Letter of Transmittal for ADSs (the “Letter
of Transmittal”), or a facsimile copy with an original
manual signature, with any required signature guarantees; and
- delivery to the Depositary at one of
its addresses set forth on the back cover of this Tender Offer
Document of any other documents required by the Letter of
Transmittal.
There are no guaranteed delivery procedures and holders of ADSs
may not accept the Tender Offer by delivering a notice of
guaranteed delivery.
An "Agent's Message" delivered in
lieu of the Letter of Transmittal is a message transmitted by DTC
to, and received by, the Depositary as part of a confirmation of a
book-entry transfer. The message states that DTC has received an
express acknowledgment from the DTC participant tendering ADSs that
such participant has received and agrees to be bound by the terms
of the Letter of Transmittal and that we may enforce such agreement
against such participant.
Within two (2) business days after the date of this Tender Offer
Document, the Depositary will establish and maintain an account at
DTC with respect to ADSs for purposes of this Tender Offer. Any
financial institution that is a participant in DTC's systems may
make book-entry delivery of ADSs by causing DTC to transfer such
ADSs into the account of the Depositary in accordance with DTC's
procedure for the transfer.
ADSs held in "street name." If the beneficial owner of ADSs is
not the registered holder of such ADSs but holds such ADSs in
"street name" through a broker, bank or custodian, such beneficial
owner should contact the broker, bank or custodian through which
such ADSs are held to discuss the appropriate procedures for
tendering.
Signature Guarantees. In general, signatures on the Letter of
Transmittal must be guaranteed by a firm that is a member of the
Medallion Signature Guarantee Program, or by any other "eligible
guarantor institution," as such term is defined in Rule 17Ad-15
under the Exchange Act (each an "Eligible
Institution"). However, signature guarantees are not
required in cases where ADSs are tendered:
- by a registered holder of ADSs who has
not completed either the box entitled "Special Payment
Instructions" or the box entitled "Special Delivery Instructions"
on the Letter of Transmittal; or
- for the account of an Eligible
Institution.
Delivery of Tendered ADSs. The method of delivery of ADSs, the
Letter of Transmittal and all other required documents is at the
election and risk of the tendering holder. Delivery of all such
documents will be deemed made only when actually received by the
Depositary (including, in the case of a book-entry transfer, by
confirmation of such transfer). If such delivery is by mail, it is
recommended that all such documents be sent by properly insured
registered mail with return receipt requested. In all cases,
sufficient time should be allowed to ensure timely delivery.
Payment for Tendered ADSs. The cash consideration for ADSs will
be payable in U.S. dollars calculated by using the open market spot
exchange rate for the U.S. dollar to euro on the nearest
practicable day to the applicable Closing Date.
Option Rights, Share Rights and Warrants
The acceptance procedure for Option Rights, Share Rights and
Warrants depends on whether such Equity Interests are in book-entry
form or certificated. All 2011 Option Rights, the 2014 Option
Rights in the 2014A tranche and all Warrants ("Uncertificated Equity Instruments") are registered
in the Finnish book-entry securities system. The 2014 Option Rights
in the 2014B, 2014C, 2014D and 2014M tranches, all 2016 Option
Rights, all Swiss Option Rights, all 2011 Share Rights and all 2014
Share Rights ("Certificated Equity
Instruments") are certificated and have not been registered
in the Finnish book-entry securities system.
Uncertificated Equity Instruments. Uncertificated Equity
Instruments comprise all 2011 Option Rights, the 2014 Option Rights
in the 2014A tranche and all Warrants. The Tender Offer must be
accepted separately for each type of Uncertificated Equity
Instrument and, if such Uncertificated Equity Instruments are held
in more than one book-entry account, separately for each book-entry
account. A holder of Uncertificated Equity Instruments may only
accept the Tender Offer for every Uncertificated Equity Instrument
on the book-entry account specified in the Acceptance Form for
Uncertificated Equity Instruments on the date of the execution of
the sale and purchase of the Uncertificated Equity Instruments. A
holder of Uncertificated Equity Instruments must have a cash
account in a financial institution operating in Finland or
abroad.
Most of the Finnish book-entry account operators will send a
notification of the Tender Offer, including instructions and an
Acceptance Form for Uncertificated Equity Instruments to their
customers who are holders of Uncertificated Equity Instruments.
Holders of Uncertificated Equity Instruments who do not receive
such notification from their account operator or asset manager can
contact the call service of OP Financial Group at (+358) (0) 100
0500 for assistance where such holders of Uncertificated Equity
Instruments will receive necessary information and instructions on
how to give their acceptance.
Holders of Uncertificated Equity Instruments whose holdings are
registered in the name of a nominee and who wish to accept the
Tender Offer shall effect such acceptance in accordance with the
nominee's instructions.
Pledged Uncertificated Equity Instruments may only be tendered
with the consent of the relevant pledgee. The obtaining of such
consent shall be the responsibility of the relevant holder of
Uncertificated Equity Instruments. The consent by the pledgee shall
be delivered in writing to the account operator.
A holder of Uncertificated Equity Instruments who wishes to
accept the Tender Offer shall submit a properly completed and duly
executed Acceptance Form for Uncertificated Equity Instruments to
the account operator managing the holder's book-entry account in
accordance with its instructions and within the time limit set by
the account operator, which may be prior to the expiry of the Offer
Period, or, if such account operator does not accept Acceptance
Forms (e.g. Euroclear), such holder of Uncertificated Equity
Instruments shall contact any branch office of the cooperative
banks belonging to the OP Financial Group or Helsinki OP Bank Plc
to give his/her acceptance to tender the Uncertificated Equity
Instruments. The Acceptance Form shall be submitted so that it is
received during the Offer Period or, if the Offer Period has been
extended, during such extended Offer Period, subject to and in
accordance with the instructions of the relevant account operator.
In the event of a Subsequent Offer Period, the Acceptance Form
shall be submitted so that it is received during the Subsequent
Offer Period, subject to and in accordance with the instructions of
the relevant account operator.
The method of delivery of Acceptance Forms is at the option and
risk of the holder of Uncertificated Equity Instruments, and the
delivery will be deemed made only when actually received by such
account operator or cooperative bank belonging to the OP Financial
Group or Helsinki OP Bank Plc. The Offeror reserves the right to
reasonably reject any acceptance given in an incorrect or
incomplete manner.
By accepting the Tender Offer, the holder of Uncertificated
Equity Instruments authorizes Pohjola Bank or a party authorized by
Pohjola Bank or the account operator managing the holder's
book-entry account to enter a transfer restriction or a sales
reservation after the holder of Uncertificated Equity Instruments
has delivered its acceptance of the Tender Offer. In addition, the
holder of Uncertificated Equity Instruments who has accepted the
Tender Offer authorizes Pohjola Bank or a party authorized by
Pohjola Bank or the account operator managing the holder's
book-entry account to perform the necessary entries and to all
other actions required to technically execute the Tender Offer and
to sell all the Uncertificated Equity Instruments owned by such
holder of Uncertificated Equity Instruments at the time of the
execution trades under the Tender Offer to the Offeror in
accordance with the terms and conditions of the Tender Offer.
A holder of Uncertificated Equity Instruments that has validly
accepted the Tender Offer and that has not properly withdrawn its
acceptance in accordance with the terms and conditions of the
Tender Offer may not sell or otherwise dispose of its tendered
Uncertificated Equity Instruments. A transfer restriction in
respect of the Uncertificated Equity Instruments will be registered
in the relevant book-entry account after a holder of Uncertificated
Equity Instruments has submitted the Acceptance Form for the Tender
Offer. If the Tender Offer is not completed or if the tender is
properly withdrawn by the holder of Uncertificated Equity
Instruments in accordance with the terms and conditions of the
Tender Offer, the transfer restriction registered on the tendered
Uncertificated Equity Instruments in the relevant book-entry
account will be removed as soon as possible and within
approximately three (3) Finnish banking days following the
announcement that the Tender Offer will not be completed or the
receipt of a notice of withdrawal in accordance with the terms and
conditions of the Tender Offer.
Certificated Equity Instruments. Certificated Equity Instruments
comprise the 2014 Option Rights in the 2014B, 2014C, 2014D and
2014M tranches, all 2016 Option Rights, all Swiss Option Rights,
all 2011 Share Rights and all 2014 Share Rights. A holder of
Certificated Equity Instruments may only accept the Tender Offer in
respect of Certificated Equity Instruments registered in his or her
name in the Company's register for such Certificated Equity
Instruments on the date of acceptance of the Tender Offer. A holder
of Certificated Equity Instruments must have a cash account in a
financial institution operating in Finland or abroad.
Pohjola Bank will send a notification of the Tender Offer,
including instructions and an Acceptance Form for Certificated
Equity Instruments to all holders of Certificated Equity
Instruments who are registered during the Offer Period in the
registry of holders of Certificated Equity Instruments held by the
Company. If the holders of Certificated Equity Instrument do not
receive such notification and Acceptance Form from Pohjola Bank, or
if the instructions and Acceptance Form cannot be sent because the
address of the holder of the Certificated Equity Instrument is
unknown, the holders of Certificated Equity Instruments can contact
the call service of OP Financial Group at (+358) (0) 100 0500 for
assistance.
Pledged Certificated Equity Instruments may only be tendered
with the consent of the relevant pledgee. The obtaining of such
consent shall be the responsibility of the relevant holder of
Certificated Equity Instruments. The consent by the pledgee shall
be delivered in writing together with the Acceptance Form.
A holder of Certificated Equity Instruments who wishes to accept
the Tender Offer shall submit a properly completed and duly
executed Acceptance Form for Certificated Equity Instruments to
Pohjola Bank in accordance with the instructions that will be sent
to such a holder of Certificated Equity Instruments together with
the Acceptance Form and within the time limit set in the
instructions, which may be prior to the expiry of the Offer
Period.
The Acceptance Form shall be submitted so that it is received on
or prior to the Expiration Date, subject to and in accordance with
the instructions of Pohjola Bank. In the event of a Subsequent
Offer Period, the acceptance form shall be submitted so that it is
received during the Subsequent Offer Period, subject to and in
accordance with the instructions of Pohjola Bank. Pohjola Bank may
set a separate time limit for delivering the Acceptance Form that
ends already before the expiry of the Offer Period.
The method of delivery of Acceptance Forms is at the option and
risk of the holder of Certificated Equity Instruments, and the
delivery will be deemed made only when actually received by Pohjola
Bank. The Offeror reasonably reserves the right to reject any
acceptance given in an incorrect or incomplete manner.
A holder of Certificated Equity Instruments that has validly
accepted the Tender Offer may not sell or otherwise dispose of its
tendered Certificated Equity Instruments. By accepting the Tender
Offer the holder of Certificated Equity Instruments authorizes
Pohjola Bank to sell their Certificated Equity Instruments to the
Offeror in accordance with the terms and conditions of the Tender
Offer.
1.5 Withdrawal Rights
In accordance with Chapter 11, Section 16, Subsection 1 of the
Finnish Securities Market Act and Section 14(d)(5) of the
Securities Exchange Act of 1934, as amended, and Rule 14d-7
thereunder, the Equity Interests validly tendered in accordance
with the terms and conditions of the Tender Offer may be withdrawn
at any time on or before the Expiration Date and such withdrawal is
permitted in respect of any or all Equity Interests so tendered. If
this Tender Offer Document is supplemented in accordance with
Chapter 11, Section 11 of the Finnish Securities Market Act and the
Offer Period is continued as a result of such supplement, an
acceptance of the Tender Offer may be withdrawn in accordance with
this section until the end of the new Expiration Date of the
continued Offer Period. After the Expiration Date, the Equity
Interests already tendered may no longer be withdrawn.
Shares and Uncertificated Equity Instruments. The proper
withdrawal of Shares and Uncertificated Equity Instruments requires
that a written notice of withdrawal is submitted to the same
account operator to whom the Acceptance Form for such Equity
Interests was submitted. If the Acceptance Form with respect to
such Equity Interests was submitted to a branch office of a
cooperative bank belonging to the OP Financial Group or Helsinki OP
Bank Plc, the notice of withdrawal must be submitted to the same
branch office. If such Equity Interests are registered in the name
of a nominee, the holder of such Equity Interests shall instruct
the nominee to submit the notice of withdrawal.
If a holder of Shares or Uncertificated Equity Instruments
withdraws its acceptance of the Tender Offer in accordance with the
terms and conditions of the Tender Offer, the transfer restriction
registered on the tendered Shares and Uncertificated Equity
Instruments in the relevant book-entry account will be removed as
soon as possible and within approximately three (3) Finnish banking
days following the receipt of a notice of withdrawal in accordance
with the terms and conditions of the Tender Offer.
ADSs. The proper withdrawal of ADSs requires that a written, or
facsimile transmission of, notice of withdrawal be received by the
Depositary in a timely manner. The notice must specify the name of
the person who tendered the ADS being withdrawn, the number of ADSs
being withdrawn, the name and number of the account at DTC to be
credited with the withdrawal of ADSs and the name of the registered
holder, if different from that of the person who tendered the
ADS.
Certificated Equity Instruments. The proper withdrawal of
Certificated Equity Instruments requires that a written notice of
withdrawal is submitted to Pohjola Bank plc in accordance with the
instructions sent to holders of Certificated Equity Instruments
together with the Acceptance Form for the Certificated Equity
Instruments. The notice of withdrawal must be received on or before
the Expiration Date.
Re-tendering. Withdrawn Equity Interests may be re-tendered by
following the acceptance procedures described in Section
1.4—"Acceptance Procedure of the Tender Offer" above prior to the
expiry of the Offer Period or, if the Offer Period has been
extended, prior to the expiry of such extended Offer Period.
The account operator managing the relevant book-entry account or
the nominee may charge a fee for withdrawals in accordance with its
price lists.
In the event of a Subsequent Offer Period, the acceptance of the
Tender Offer will be binding and cannot be withdrawn, unless
otherwise provided under mandatory Finnish and/or United States
law.
1.6 Announcement of the Results of the Tender
Offer
The Offeror will announce the preliminary result with respect to
the Offer Period on the first (1st) Finnish banking day following
the Expiration Date. The preliminary result announcement will
confirm (i) the initial percentage of the Equity Interests that
have been validly tendered and not properly withdrawn and (ii)
whether the Offeror will complete the Tender Offer and accept the
Equity Interests tendered into the Tender Offer. As set forth in
Section 1.2—"Conditions to Completion of the Tender Offer," the
Offeror's obligation to consummate the Tender Offer is subject to
the fulfilment or waiver by the Offeror of the Conditions to
Completion, including the Minimum Condition, on or prior to the
date of such preliminary result announcement. For the avoidance of
doubt, the satisfaction of the Minimum Condition shall be
determined based on the preliminary results with respect to the
Offer Period.
The Offeror will announce the final result with respect to the
Offer Period on or about the third (3rd) Finnish banking day
following the Expiration Date. The final result announcement will
confirm the final percentage of the Equity Interests that have been
validly tendered into the Tender Offer and not properly
withdrawn.
The Offeror will announce the initial percentage of the Equity
Interests validly tendered during any Subsequent Offer Period on
the first (1st) Finnish banking day following the expiry of the
Subsequent Offer Period and the final percentage on or about the
second (2nd) Finnish banking day following the expiry of the
Subsequent Offer Period.
1.7 Terms of Payment and Settlement of Shares
If the Tender Offer is consummated, the sale and purchase of the
Shares validly tendered and not properly withdrawn in accordance
with the terms and conditions of the Tender Offer during the Offer
Period will be executed on the fourth (4th) Finnish banking day
following the Expiration Date. The sale and purchase of the Shares
will take place on Nasdaq Helsinki unless prohibited by the rules
applicable to securities trading on Nasdaq Helsinki. Otherwise the
sale and purchase of the Shares will take place outside of Nasdaq
Helsinki.
Settlement will be effected against payment, and the Closing
Date of the Shares with respect to the Offer Period will occur, on
or about the second (2nd) Finnish banking day following the
execution of the sale and purchase of the Shares, or on or about
the sixth (6th) Finnish banking day following the Expiration Date.
Therefore the payment of the Share Offer Price will be made on such
Closing Date into the bank account connected to the shareholder's
book-entry account or, in the case of shareholders whose holdings
are registered in the name of a custodian or a nominee, into the
bank account specified by the custodian or nominee. Actual time of
receipt for the payment will depend on the schedules of money
transactions between financial institutions and agreements between
the shareholder and account operator or nominee in each case.
The Offeror will announce the terms of payment and settlement
for the Shares tendered during any Subsequent Offer Period in
connection with the announcement thereof. The sale and purchase of
Shares validly tendered in accordance with the terms and conditions
of the Tender Offer during the Subsequent Offer Period will be
executed in intervals of approximately one (1) week.
The Offeror reserves the right to postpone the payment of the
Share Offer Price if payment is prevented or suspended due to a
force majeure event, but will immediately effect such payment once
the force majeure event preventing or suspending payment is
resolved.
1.8 Terms of Payment and Settlement of ADSs
The sale and purchase of the ADSs validly tendered and not
withdrawn during the Offer Period in accordance with the terms and
conditions of the Tender Offer will be executed no later than on
the sixth (6th) Finnish banking day following the Expiration
Date.
The Offeror will announce the terms of payment and settlement
for the ADSs tendered during any Subsequent Offer Period in
connection with the announcement thereof. The sale and purchase of
ADSs validly tendered in accordance with the terms and conditions
of the Tender Offer during the Subsequent Offer Period will be
executed in intervals of approximately one (1) week.
The ADS Offer Price will be payable in U.S. dollars calculated
by using the open market spot exchange rate for the U.S. dollar to
euro on the nearest practicable day to the applicable Closing
Date.
The Offeror reserves the right to postpone the payment of the
ADS Offer Price if payment is prevented or suspended due to a force
majeure event, but will immediately effect such payment once the
force majeure event preventing or suspending payment is
resolved.
1.9 Terms of Payment and Settlement of Option Rights,
Share Rights and Warrants
Uncertificated Equity Instruments. The sale and purchase of the
Uncertificated Equity Instruments, which comprise all 2011 Option
Rights, the 2014 Option Rights in the 2014A tranche and all
Warrants, validly tendered and not properly withdrawn in accordance
with the terms and conditions of the Tender Offer during the Offer
Period will be executed on the fourth (4th) Finnish banking day
following the Expiration Date. The sale and purchase of the
Uncertificated Equity Instruments will take place outside of Nasdaq
Helsinki.
Settlement will be effected against payment, and the Closing
Date of the Uncertificated Equity Instruments with respect to the
Offer Period will occur, on or about the second (2nd) Finnish
banking day following the execution of the sale and purchase of the
Uncertificated Equity Instruments, or on or about the sixth (6th)
Finnish banking day following the Expiration Date. Therefore the
payment of the applicable Offer Price will be made on such Closing
Date into the bank account connected to the book-entry account of
the holder of the Uncertificated Equity Instruments or, in the case
of holders whose holdings are registered in the name of a custodian
or a nominee, into the bank account specified by the custodian or
nominee. Actual time of receipt for the payment will depend on the
schedules of money transactions between financial institutions and
agreements between the holder and account operator, custodian or
nominee in each case.
The Offeror will announce the terms of payment and settlement
for the Uncertificated Equity Instruments tendered during any
Subsequent Offer Period in connection with the announcement
thereof. The sale and purchase of Uncertificated Equity Instruments
validly tendered in accordance with the terms and conditions of the
Tender Offer during the Subsequent Offer Period will be executed in
intervals of approximately one (1) week.
The Offeror reserves the right to postpone the payment of the
applicable Offer Price if payment is prevented or suspended due to
a force majeure event, but will immediately effect such payment
once the force majeure event preventing or suspending payment is
resolved.
Certificated Equity Instruments. The sale and purchase of the
Certificated Equity Instruments, which comprise the 2014 Option
Rights in the 2014B, 2014C, 2014D and 2014M tranches, all 2016
Option Rights, all Swiss Option Rights, all 2011 Share Rights and
all 2014 Share Rights, validly tendered and not properly withdrawn
in accordance with the terms and conditions of the Tender Offer
during the Offer Period will be executed, and the Closing Date for
the Certificated Equity Instruments with respect to the Offer
Period will occur, on or about the sixth (6th) Finnish banking day
following the Expiration Date.
The Offeror will make the payment of the applicable Offer Price
for the relevant Certificated Equity Instruments on such Closing
Date. Actual time of receipt for the payment depends on the
schedules of money transactions between financial institutions and
agreements between the shareholder and account operator or nominee
in each case. Holders of Certificated Equity Instruments will be
required to provide Pohjola Bank their bank account information and
certain additional information specified in the instructions that
will be sent to the holders of Certificated Equity Instruments
together with their Acceptance Form.
The Offeror will announce the terms of payment and settlement
for the Certificated Equity Instruments tendered during any
Subsequent Offer Period in connection with the announcement
thereof. The sale and purchase of Certificated Equity Instruments
validly tendered in accordance with the terms and conditions of the
Tender Offer during the Subsequent Offer Period will be executed in
intervals of approximately one (1) week.
The Offeror reserves the right to postpone the payment of the
applicable Offer Price if payment is prevented or suspended due to
a force majeure event, but will immediately effect such payment
once the force majeure event preventing or suspending payment is
resolved.
1.10 Transfer of Ownership
Shares. Title to the Shares validly tendered in the Tender Offer
will pass to the Offeror on the applicable Closing Date against the
payment of the Share Offer Price by the Offeror to the tendering
shareholder. In the event of a Subsequent Offer Period, title to
the Shares validly tendered in the Tender Offer during the
Subsequent Offer Period will pass to the Offeror against the
payment of the Share Offer Price by the Offeror to the tendering
shareholder as promptly as reasonably practicable following their
tender.
ADSs. Title to the ADSs validly tendered in the Tender Offer
will pass to the Offeror on the applicable Closing Date against the
payment of the ADS Offer Price by the Offeror to the tendering ADS
holder. In the event of a Subsequent Offer Period, title to the
outstanding ADSs validly tendered in the Tender Offer during the
Subsequent Offer Period will pass to the Offeror against the
payment of the ADS Offer Price by the Offeror to the tendering ADS
holder as promptly as reasonably practicable following their
tender.
Option Rights, Share Rights and Warrants. Title to Option
Rights, Share Rights and Warrants that are validly tendered in the
Tender Offer will pass to the Offeror on the applicable Closing
Date against the payment of the applicable Offer Price for the
relevant Equity Interests by the Offeror to the tendering holder of
such Equity Interests. In the event of a Subsequent Offer Period,
title to Option Rights, Share Rights and Warrants validly tendered
in the Tender Offer during the Subsequent Offer Period will pass to
the Offeror against the payment of the applicable Offer Price for
the relevant Equity Interests by the Offeror to the tendering
holder of such Equity Interests as promptly as reasonably
practicable following their tender.
1.11 Subsequent Offer Period
The Offeror reserves the right to commence a Subsequent Offer
Period in connection with the announcement of the final result with
respect to the Offer Period if the Tender Offer shall have been
announced to be unconditional at that time. In the event of such
Subsequent Offer Period, the Subsequent Offer Period will expire on
the date and at the time determined by the Offeror in the final
result announcement. The Subsequent Offer Period may extend beyond
ten (10) weeks from the beginning of the original Offer Period
(and, in the Offeror's discretion, beyond June 19, 2016).
Acceptance of Equity Interests tendered during the Subsequent Offer
Period follows the procedures outlined in Section 1.4 – "Acceptance
Procedure of the Tender Offer". Except in the event of a supplement
to the Tender Offer Document in accordance with Chapter 11, Section
11 of the Finnish Securities Market Act, no withdrawal rights are
available during the Subsequent Offer Period, and payment for and
acceptance of Equity Interests validly tendered during the
Subsequent Offer Period will take place on a periodic basis in
intervals of approximately one (1) week and payment will be
effected by the Offeror no later than five (5) Finnish banking days
after the end of the relevant one week interval. The Offeror will
announce the terms of payment and settlement for the Equity
Interests tendered during any Subsequent Offer Period in connection
with the announcement thereof.
1.12 Transfer Tax and Other Payments
The Offeror will pay the Finnish transfer tax, if any, payable
on the sale and purchase of Equity Interests. The Offeror will not,
however, pay any Finnish transfer tax that is levied in addition to
the aforementioned transfer tax solely because the Offer Price has
to be paid to a person other than the person in whose name such
Equity Interests have been registered. If the Offer Price has to be
paid to a person other than the person in whose name the Equity
Interests have been registered, the Offeror has the right to
subtract from the Offer Price the amount of this additional
transfer tax levied on the Offer Price, unless the person
requesting the payment pays in advance to the Offeror the said
transfer tax that is levied as a result of a payment to a person
other than a registered holder of Equity Interests, or establishes
to the satisfaction of the Offeror that such tax has been paid or
is not payable.
The Offeror will not, however, be responsible for payment of
such transfer tax, where the tax liability is based on the Finnish
Tax Administration's position on taxation of employment options
stated in its guidance (record no. A186/200/2015). As further
discussed in Section 1.14—“Material Finnish Income Tax
Consequences,” such transfer tax liability with respect to
employment based option arrangements arises at the moment when a
subscription right is granted, but the amount of payable transfer
tax can only be determined upon exercising the right (e.g. in
connection with the Tender Offer).
Fees charged by account operators, asset managers, nominees or
any other person for registering the release of any pledges or
other possible restrictions preventing a sale of the relevant
Equity Interests, as well as fees relating to a withdrawal of the
tender by a holder of Equity Interests in accordance with Section
1.5—"Withdrawal Rights" above, will be borne by the holders of
Equity Interests incurring such fees. The Offeror will be
responsible for other customary fees relating to book-entry
registrations required for the purposes of the Tender Offer, the
sale and purchase of the Equity Interests tendered under the Tender
Offer or the payment of the Offer Price.
In connection with a Subsequent Compulsory Redemption, if any,
holders of ADSs will bear any fees and expenses charged by the
depositary under the ADS deposit agreement.
1.13 Material United States Federal Income Tax
Consequences
The following discussion is a summary of U.S. federal income tax
consequences generally applicable to you if you are a U.S. Holder
(as defined below) upon the tender of Equity Interests in the
Tender Offer or an exchange of such securities for cash in
connection with a Subsequent Compulsory Redemption, if any. For
purposes of the discussion in this Section 1.13, except as
otherwise noted, references to Shares include ownership interests
in Shares through ADSs. This discussion is based on the U.S.
Internal Revenue Code of 1986, as amended (the "Code"), final, proposed and temporary U.S.
Treasury Regulations promulgated thereunder, administrative
pronouncements, and judicial decisions as of the date hereof, all
of which are subject to change, possibly on a retroactive basis,
and to differing interpretation, which may result in tax
consequences different from those described below. This discussion
is not binding on the U.S. Internal Revenue Service (the
"IRS"), and the IRS or a court in the
event of an IRS dispute may challenge any of the conclusions set
forth below.
This discussion does not address any U.S. federal estate, gift,
or other non-income tax consequences, consequences of the Medicare
tax on net investment income or any state, local, or non-U.S. tax
consequences of the Tender Offer or Subsequent Compulsory
Redemption, if any. This discussion is a summary for general
information purposes only and does not consider all aspects of U.S.
federal income taxation that may be relevant to you in light of
your individual investment circumstances or if you are a certain
type of holder subject to special tax rules, including: (i) holders
that are banks, financial institutions, or insurance companies;
regulated investment companies, mutual funds, or real estate
investment trusts; brokers or dealers in securities or currencies
or traders in securities that elect to apply a mark-to-market
accounting method; or tax-exempt organizations, (ii) holders that
own Equity Interests as part of a straddle, hedge, constructive
sale, conversion transaction, or other integrated investment, (iii)
holders that acquired Shares or Warrants in connection with the
exercise of employee share options or otherwise as compensation for
services, (iv) holders that have a "functional currency" other than
the U.S. dollar, (v) retirement plans, individual retirement
accounts, or other tax-deferred accounts, (vi) U.S. expatriates,
(vii) holders that are subject to alternative minimum tax, (viii)
holders that actually or constructively own 10 percent or more of
our voting stock, (ix) entities subject to the anti-inversion rules
of Section 7874 of the Code or (x) partnerships or other entities
classified as partnerships for U.S. federal income tax purposes.
This discussion assumes that all Option Rights and Share Rights
held by a U.S. Holder were granted to the holder as compensation in
exchange for services.
As used herein, a "U.S. Holder" is any beneficial owner of
Equity Interests who or that is (i) an individual citizen or
resident of the United States for U.S. federal income tax purposes,
(ii) a corporation (or other entity treated as a corporation for
U.S. federal income tax purposes) created or organized under the
laws of the United States, any state thereof, or the District of
Columbia, (iii) an estate the income of which is subject to U.S.
federal income taxation regardless of its source or (iv) a trust
which (a) is subject to the primary jurisdiction of a court within
the United States and for which one or more U.S. persons have
authority to control all substantial decisions, or (b) has a valid
election in effect under applicable U.S. Treasury Regulations to be
treated as a U.S. person for U.S. federal income tax purposes.
If a partnership (including any entity classified as a
partnership for U.S. federal income tax purposes) is a beneficial
owner of Equity Interests, the U.S. federal income tax treatment of
a partner in the partnership generally will depend on the status of
the partner and the activities of the partners and the partnership.
Any partner of a partnership holding Equity Interests is urged to
consult its own tax advisor.
ALL HOLDERS OF EQUITY INTERESTS SHOULD CONSULT THEIR TAX
ADVISORS REGARDING THE SPECIFIC TAX CONSEQUENCES OF TENDERING THEIR
EQUITY INTERESTS IN THIS TENDER OFFER OR EXCHANGING SUCH SECURITIES
FOR CASH IN CONNECTION WITH A SUBSEQUENT COMPULSORY REDEMPTION IN
LIGHT OF THEIR PARTICULAR SITUATIONS, INCLUDING THE APPLICABILITY
AND EFFECT OF U.S. FEDERAL, STATE, LOCAL, NON-U.S. AND OTHER
LAWS.
Consequences to U.S. Holders of Shares or Warrants
Assuming that each U.S. Holder holds its Shares and/or Warrants
as capital assets within the meaning of Section 1221 of the Code,
and subject to the rules described under "Passive Foreign
Investment Company Considerations" and "Exchange of Foreign
Currencies" below, the receipt of cash, either as consideration
upon consummation of the Tender Offer or in connection with a
Subsequent Compulsory Redemption, if any, will be a taxable
transaction for U.S. federal income tax purposes. A U.S. Holder who
so exchanges Shares or Warrants for cash generally will recognize
gain or loss in an amount equal to the difference between (i) the
amount realized and (ii) such U.S. Holder's adjusted tax basis in
the Shares or Warrants exchanged therefor. Subject to the
discussion below under "Passive Foreign Investment Company
Considerations," and "Exchange of Foreign Currencies" such gain or
loss will be capital gain or loss and will be long-term if such
U.S. Holder has held such Shares or Warrants for more than one
year.
Passive Foreign Investment Company Considerations
There can be no assurance that the Company was not a "passive
foreign investment company" within the meaning of Section 1297 of
the Code ("PFIC") for its taxable year
ended December 31, 2015 or in previous taxable years. In addition,
the Company's PFIC status is tested each year and is dependent on
the composition of its assets and income and the value of its
assets from time to time. Because the Company currently holds, and
has stated that it expects to continue to hold, a substantial
amount of cash and other passive assets, and because the value of
our assets is uncertain and likely to fluctuate over time, there
can be no assurance that the Company will not be a PFIC for
2016.
In general, the Company will be classified as a PFIC in any
taxable year if either (a) the average quarterly value of its gross
assets that produce passive income or are held for the production
of passive income is at least 50 percent of the average quarterly
value of our total gross assets (the "asset test") or (b) at least
75 percent of its gross income for the taxable year is passive
income (such as certain dividends, interest or royalties). For this
purpose, the Company will be treated as owning its proportionate
share of the assets and earning its proportionate share of the
income in any other corporation in which it owns, directly or
indirectly, at least 25 percent (by value) of the stock. For
purposes of the asset test: (a) any cash and cash invested in
short-term, interest bearing debt instruments or bank deposits that
are readily convertible into cash will generally count as producing
passive income or held for the production of passive income and (b)
the relevant legislative history indicates that it is generally
permissible to determine the total value of the Company's assets
based on the Company's market capitalization.
If the Company is a PFIC for the current taxable year or has
been a PFIC during any prior year in which a U.S. Holder held
Shares and you have not made a valid mark-to-market election or
qualified electing fund election (a "QEF
Election") (discussed below), any gain recognized by you on
the disposition of a Share generally (a) would be allocated ratably
to each day in your holding period for the Share, (b) the amount
allocated to the current year and any tax year prior to the first
taxable year in which we were a PFIC would be taxed as ordinary
income in the current year, (c) the amount allocated to each other
taxable year would be subject to tax at the highest applicable
marginal rate in effect for that year and (d) an interest charge at
the rate for underpayments of taxes would be imposed on the
resulting tax allocated to such period. A U.S. Holder of Warrants
is likely taxed in a manner similar to a U.S. Holder of Shares if
the holder realizes gain on the sale of the Warrants. If you
exercise Warrants to purchase Shares and the rules described above
apply to such Warrant, the holding period over which any income
realized is allocated would include the holding period of the
Warrants. Holders of Warrants are urged to consult with their own
tax advisors regarding the application of the PFIC rules with
respect to the disposition of their Warrants.
If the Company was a PFIC in any year in which a U.S. Holder
held Shares and certain conditions relating to the regular trading
of Shares have been met in the past, a U.S. Holder of Shares may
have been able to make a so-called "mark-to-market" election with
respect to their Shares. If a U.S. Holder made this election in a
timely fashion, then instead of the tax treatment described in the
preceding paragraph, any gain recognized by the U.S. Holder as a
result of the disposition of Shares in this Tender Offer (or a
Subsequent Compulsory Redemption) would generally be treated as
ordinary income or ordinary loss (limited to the extent of the net
amount of previously included income as a result of the
mark-to-market election, if any). It is not clear under current law
whether the mark-to-market election is available with respect to
the Warrants. Holders of Warrants should consult their own tax
advisors regarding the availability of such an election.
If the Company is or was a PFIC for any year and you have made a
QEF Election with respect to the Company and any lower-tier PFIC in
the first taxable year that the Company and each lower-tier PFIC
are treated as PFICs with respect to you and maintained the
election for each following year, you will be currently taxable on
your pro rata share of the relevant PFIC's ordinary earnings and
net capital gain (at ordinary income and capital gain rates,
respectively) for each taxable year that the entity is classified
as a PFIC. Your tax basis in your Shares is increased by an amount
equal to any income included under the QEF Election and decreased
by any amount distributed on the Shares that is not included in
your income. On the disposition of the Shares in the Tender Offer,
you will recognize capital gain or loss on the disposition of
Shares in an amount equal to the difference between the amount
realized and your adjusted tax basis in the Shares, as determined
in U.S. dollars. You should consult your tax advisor regarding the
ability to make a QEF Election in your particular
circumstances.
You may not make a QEF Election with respect to your Warrants.
As a result, if the Company was a PFIC at any time during the
period that you held Warrants, any gain recognized by you upon the
sale or other disposition of a Warrant (other than upon exercise of
a Warrant) will likely be subject to the ordinary income allocation
and interest charge rules described above.
If the Company is a PFIC for the current taxable year or has
been a PFIC during any prior year in which a U.S. Holder held
Shares, a U.S. Holder generally would be required to file IRS Form
8621 with respect to the disposition of Shares. The PFIC rules are
complex, and you should consult your own tax advisors regarding the
applicable consequences of tendering your Shares or Warrants in the
Tender Offer if we are a PFIC or have been a PFIC during any prior
year in which you held Shares or Warrants.
Exchange of Foreign Currencies
A U.S. Holder that receives foreign currency on a sale of Equity
Interests generally will realize an amount of gain or loss (or
ordinary income in the case of Option Rights or Share Rights, as
described below) based on the U.S. dollar value of the foreign
currency on the date of the sale. Any gain or loss recognized on
the subsequent sale, conversion or disposition of such foreign
currency will be U.S. source ordinary income or loss. However, if
such foreign currency is converted into U.S. dollars on the date
received by the U.S. Holder, a cash basis or electing accrual basis
U.S. Holder should not recognize any gain or loss on such
conversion. An accrual basis U.S. Holder that holds Shares will
realize an amount equal to the U.S. dollar value of Shares on the
date the tender is accepted. Such U.S. Holder will then recognize a
gain or loss, if any, measured by the difference between the U.S.
dollar value of the applicable Offer Price on the date the tender
is accepted, and the U.S. dollar amount actually received on the
date of payment. The recognized gain or loss, if any, will be
ordinary income or loss, and will generally be income or loss from
sources within the U.S. for foreign tax credit limitation
purposes.
In general, any foreign currency loss will be treated as a
"reportable transaction" for U.S. federal income tax purposes to
the extent that the amount of the loss equals or exceeds certain
threshold amounts (USD 50,000 in the case of individuals or trusts,
whether or not the loss flows through from an S corporation or
partnership, and USD 10 million in the case of corporate
taxpayers). You should consult your own tax advisor concerning the
application of the reportable transaction regulations to the Tender
Offer, including any requirement to file IRS Form 8886.
Consequences of the Tender Offer to U.S. Holders of Option
Rights or Share Rights
The receipt of cash in exchange for your Option Rights and Share
Rights pursuant to the Tender Offer will be a taxable transaction
for U.S. federal income tax purposes. The cash you receive for your
tendered Option Rights and Share Rights pursuant to the Tender
Offer will be treated as ordinary compensation income to the person
who was originally granted the Option Rights or Share Rights, and
the amount payable to you in the Tender Offer or in connection with
Subsequent Compulsory Redemption, if any, may be subject to U.S.
federal, and possibly also state and local, withholding (including
payroll taxes) owed by the original grantee. You should consult
your tax advisor regarding the consequences of tendering Option
Rights or Stock Rights in the Tender Offer given your own
circumstances including under the rules described above.
Information Reporting and Backup Withholding
You may be subject, under certain circumstances, to information
reporting and backup withholding with respect to the amount of cash
received in the Tender Offer (or in connection with a Subsequent
Compulsory Redemption, if any).
Backup Withholding
Under the backup withholding rules, a holder of Equity Interests
that is a U.S. Person may be subject to backup withholding unless
such holder is an exempt recipient and, when required, demonstrates
this fact or provides a taxpayer identification number, makes
certain certifications on IRS Form W-9, and otherwise complies with
the applicable requirements. If such holder does not provide a
correct taxpayer identification number, such holder may also be
subject to penalties imposed by the IRS. Holders should consult
their tax advisors regarding qualification for exemption from
backup withholding and the procedure for obtaining such an
exemption.
A tendering holder that is a U.S. Person generally is required
to provide a correct Taxpayer Identification Number (“TIN”) on IRS
Form W-9, which is available on the IRS’s website at
https://www.irs.gov/, and to certify, under penalties of perjury,
that such number is correct and that such holder is not subject to
backup withholding of U.S. federal income tax. If a tendering
holder that is a U.S. Person is subject to backup withholding, such
holder must cross out Item (2) of Part II of IRS Form W-9. If the
correct TIN is not provided, then the holder may be subject to a
penalty imposed by the IRS and backup withholding of payments to
the holder pursuant to the Tender Offer. See the instructions to
IRS Form W-9 for additional information regarding qualifying for an
exemption from backup withholding. Holders are advised to consult
their respective tax advisors as to their qualifications for
obtaining an exemption from backup withholding and the procedure
for obtaining such an exemption.
Certain U.S. Persons (including, among others, certain
corporations) are not subject to backup withholding. Exempt holders
should furnish their TIN, check the “Exempt payee” box on the IRS
Form W-9 and sign, date and return the IRS Form W-9 in order to
avoid erroneous backup withholding. See the instructions to the IRS
Form W-9, which are available on the IRS’s website at
https://www.irs.gov/.
The TIN of a holder that is a U.S. Person will generally be the
Social Security number or employer identification number of such
holder. If such holder holds the Equity Interests in more than one
name or if the Equity Interests are not in the name of the actual
owner, please consult the instructions to the IRS Form W-9 for
additional guidance on which number to report. If the Offeror has
reason to know that the tendering holder is a U.S. Person and the
tendering holder does not provide a TIN by the time of payment, a
portion of all payments of the purchase price may be subject to
backup withholding as described below.
If backup withholding applies with respect to a holder, a
portion (currently, 28%) of any payment made to such holder is
required to be withheld and paid over to the IRS. Backup
withholding is not an additional tax. Rather, the United States
federal income tax liability of persons subject to backup
withholding will be reduced by the amount of tax withheld. If
backup withholding results in an overpayment of taxes, a refund may
be obtained from the IRS if required information is timely
furnished to the IRS.
IF YOU ARE A U.S. PERSON, FAILURE TO COMPLETE AND RETURN THE
IRS FORM W-9 MAY RESULT IN BACKUP WITHHOLDING OF A PORTION OF ANY
PAYMENTS MADE TO YOU PURSUANT TO THE TENDER OFFER. PLEASE REVIEW
THE INSTRUCTIONS TO THE IRS FORM W-9 FOR ADDITIONAL
DETAILS.
Other Information Reporting
Certain U.S. Holders may be required to report information with
respect to their investment in Equity Interests not held through a
custodial account with a financial institution to the IRS. The Code
also imposes penalties if a U.S. Holder is required to report such
information to the IRS and fails to do so. U.S. Holders should
consult their tax advisors regarding their reporting obligation
with respect to the disposition of their Equity Interests.
1.14 Material Finnish Income Tax Consequences
The following summary is based on the tax laws in force and
taxation practice in Finland as of the date hereof. Changes in
Finnish tax laws and taxation practice may affect, also
retroactively, the application of the tax rules discussed in this
summary. The following summary is not exhaustive and it
concentrates only on certain general aspects of the taxation of
Biotie shareholders and holders of Option Rights, Share Rights and
Warrants under the Finnish law. The summary does not explain or
take into account the legislation of other jurisdictions than
Finland.
The following summary does not cover tax consequences related to
Biotie shareholders and holders of Option Rights, Share Rights and
Warrants under special provisions, including, for instance, income
tax-exempt entities, sole proprietorships, partnerships and limited
partnerships. Neither does the summary cover (i) the tax
consequences of shareholders or holders of Option Rights, Share
Rights and Warrants subject to tax in Finland based on the
applicability of Finnish CFC regulation or (ii) the Finnish
inheritance or gift taxation implications.
ALL HOLDERS OF EQUITY INTERESTS SHOULD CONSULT THEIR TAX
ADVISORS REGARDING THE SPECIFIC TAX CONSEQUENCES OF TENDERING THEIR
EQUITY INTERESTS IN THIS TENDER OFFER OR EXCHANGING SUCH SECURITIES
FOR CASH IN CONNECTION WITH A SUBSEQUENT COMPULSORY REDEMPTION IN
LIGHT OF THEIR PARTICULAR SITUATIONS, INCLUDING THE APPLICABILITY
AND EFFECT OF FINNISH TAXATION LAWS.
The following summary is based on: (i) The Income Tax Act
(1535/1992 as amended); (ii) The Business Income Tax Act (360/1968
as amended); and (iii) The Transfer Tax Act (931/1996 as
amended).
In addition, relevant Finnish case law as well as decisions and
statements made by the Finnish tax authorities in effect and
available as of the date hereof have been taken into account.
General
Residents and non-residents persons in Finland are treated
differently in taxation. Tax residents in Finland are obliged to
pay tax for their worldwide income. Non-residents are obligated to
pay tax only for their income from Finland. Additionally,
non-residents in Finland are obligated to pay tax on the income
from a permanent establishment located in Finland. The double tax
treaties entered into by Finland may prevent the application of
Finnish domestic legislation and prevent taxation of income
received from Finland by a non-resident.
An individual is deemed resident in Finland for tax purposes
when such an individual stays in Finland for a continuous period
exceeding six (6) months with only short and temporary absences or
has his main abode and home in Finland. A Finnish citizen who has
moved abroad is deemed resident until three (3) years have elapsed
from the end of the year during which he or she left the country,
unless he or she proves that no more substantial ties to Finland
exist on his part during the tax year concerned. The earned income,
including salary, of a Finnish tax resident individual is taxed at
a progressive rate. Capital income is currently taxed at 30 percent
rate. However, if the total amount of capital income accrued during
a calendar year exceeds EUR 30,000, the excess is taxed at a rate
of 34 percent. Corporate entities established under the Finnish
legislation are generally liable to tax in Finland and therefore
liable to tax in Finland on their worldwide income. The corporate
income tax rate is currently 20 percent.
Taxation of the profits accrued on the sale of the Shares,
Option Rights, Share Rights and Warrants
Taxation of Finnish Resident Individuals
The capital gain accrued on the sale of Shares, Option Rights,
Share Rights and Warrants is taxed as capital income of Finnish tax
resident individuals. However, please note the rules regarding
employment based option arrangements provided in the section 66.3
of the Income Tax Act explained below, which affect the taxation of
the received benefit to be generally taxed as earned income.
According to the rules in force since the beginning of 2016,
capital loss generated from the sale of the Shares, Option Rights,
Share Rights and Warrants is tax deductible from all capital
income. This applies to capital losses arising during or after the
year 2016. Those capital losses which are accrued prior to 2016 are
deductible only from capital gains and not from all capital income.
Capital losses may be deducted during the same tax year and during
the five (5) following tax years. Capital losses are not taken into
account when confirming the amount of tax credit for capital
loss.
Notwithstanding the above, capital gains arising from the sale
of assets are exempt from tax provided that the proceeds of all
assets sold by the resident individual during the calendar year do
not, in the aggregate, exceed EUR 1,000 (not including proceeds
from a sale of assets that is tax-exempt pursuant to Finnish tax
laws). Correspondingly, capital losses are not tax deductible if
(i) the acquisition cost of all assets sold during the calendar
year does not, in the aggregate, exceed EUR 1,000 and (ii) the
proceeds of all assets sold by the resident individual during the
calendar year do not, in the aggregate, exceed EUR 1,000. If the
sale of the Shares, Option Rights, Share Rights and Warrants
relates to the seller's business, the income received from the sale
shall be divided so as to be taxed partially as earned income at
the progressive rate and partially as capital income at 30/34 rate.
Losses accrued in business are deducted as described below in
connection with "Taxation of Finnish Corporations".
Any capital gain or loss is calculated by deducting the original
acquisition cost and sales related expenses from the sales price.
Alternatively, individuals may, instead of deducting the actual
acquisition costs, choose to apply a so-called presumptive
acquisition cost, which is equal to 20 percent of the sales price
or, if the shares have been held for at least ten years, 40 percent
of the sales price. If the presumptive acquisition cost is used
instead of the actual acquisition cost, any sales related expenses
are deemed to be included therein and, therefore, may not be
separately deducted from the sales price.
The abovementioned rules regarding the taxation of capital gains
and losses are not applicable to instruments which are regarded as
employment based option rights under the section 66.3 of the Income
Tax Act. For instance, such instruments can be option rights
received on the basis of an incentive program where the option
right has not yet been used to subscribe for shares. According to
the rules on taxation of employment based option rights, the
disposal of the option right is considered as an exercise of the
option and the benefit received from the disposal is taxed as
earned income of the employee at the progressive rate. If the
employee has already subscribed for shares according to the terms
and conditions of the incentive program, the disposal of said
shares is taxed as capital gain or loss as described above.
Taxation of Finnish Corporations
Finnish corporations are liable to tax on their worldwide
income. The taxable income of a Finnish corporation is defined
separately for business activities, agriculture and other
activities. The sales price of Shares, Option Rights, Share Rights
and Warrants is usually regarded as the taxable income of the
business activities or other activities of a corporation. The
income from both sources is taxable at the flat tax rate of 20
percent. The capital gain and loss are calculated by deducting
original acquisition cost and sales related expenses from the sales
price. The undepreciated acquisition cost of the disposed
instruments is deductible from the income of the source that the
disposed Shares, Option Rights, Share Rights and Warrants belonged
to for the corporation. The possible loss accrued from the disposal
of Shares, Option Rights, Share Rights and Warrants belonging to
the business income source may be deducted from other income of the
business income source. The tax loss carry forwards of business may
be deducted from business income during the following ten (10) tax
years. Capital losses belonging to the other income source are tax
deductible during the same year or the following five (5)
years.
As an exception to the above, the capital gains received by a
corporation from the disposal of the shares that belong to its
business activities, which the corporation has continuously owned
for a minimum period of one year and which entitle it to at least
10 percent of the share capital of the company owned, may be tax
exempt under certain conditions. Capital losses arising from the
disposal of the said shares are not deductible in taxation. The
losses incurred from the disposal of shares belonging to the
business activities and which may not be disposed tax free, are
deductible in taxation only from profits accrued from the disposal
of shares belonging to the business activities during the tax year
and following five (5) years.
Taxation of Non-residents
Non-residents who are not generally liable for tax in Finland
usually will not be subject to Finnish taxes on capital gains
realized on the sale of shares or subscription rights of a Finnish
company, unless the non-resident taxpayer is deemed to have a
permanent establishment for income tax purposes in Finland and the
shares are considered as assets of that permanent establishment. In
addition, non-resident holders of employment based option rights,
as described in the section 66.3 of the Income Tax Act, are liable
to tax in those situations and only to the extent that the benefit
received from the disposal of the option right is accrued from the
time the employee worked mainly in Finland on behalf of a Finnish
employer. The benefit received shall be taxed as earned income.
However, a double taxation treaty applicable to the situation may
limit the right to the tax in Finland.
Transfer Tax
Transfer tax is generally not payable on the transfer of
securities subject to public trading against fixed cash
consideration. The transaction is not subject to transfer tax
provided that an investment service company or a foreign investment
service company or another investment service provider, as defined
in the Finnish Act on Investment Services (747/2012, as amended),
is brokering or serving as a party to the transaction or that the
transferee has been approved as a trading party in the market where
the transfer is executed. If the broker or other party to the
transfer is not a Finnish investment firm, Finnish credit
institution or Finnish branch or office of a foreign investment
firm or credit institution, the transfer will be tax exempt
provided that the transferee liable for tax notifies the Finnish
tax authorities of the transfer within two months thereof or the
broker submits an annual declaration concerning the transfer to the
Finnish Tax Administration as set forth in the Act on Assessment
Procedure. Tax exemption does not apply to transfers executed as
equity investments or distribution of funds or to transfers in
which consideration comprises in full or in part of work performed,
or to certain other transfers set out in the Transfer Tax Act.
The buyer is liable to pay transfer tax amounting to 1.6 percent
of the transaction price in transfers of Shares, Option Rights,
Share Rights and Warrants that do not fulfil the above criteria but
which are regarded as securities in the light of Transfer Tax Act,
such as option rights and other special rights under the Finnish
Companies Act entitling to subscription of shares. If the buyer is
not generally liable for tax in Finland or if the buyer is not a
foreign credit institution's or investment firm's or management
company's Finnish branch, the seller must charge the tax from the
buyer. If the broker is a Finnish stockbroker or a credit
institution or a foreign stockbroker's or credit institution's
Finnish branch, it is liable to charge the transfer tax from the
buyer and give an account thereof to the buyer. If neither party to
the transaction is generally liable for tax in Finland or if
neither party to the transaction is a foreign credit institution's,
investment firm's or management company's Finnish branch or office,
transfer tax will not be payable on the transfer (excluding
transfers of qualified real estate company shares). No transfer tax
is levied if the amount of the tax is less than EUR 10.
In addition, the employees taking part in the incentive programs
of the Company shall take into account the current view of the
Finnish Tax Administration regarding transfer tax liability of
employment based option rights and its realization in connection
with the disposal of rights. The received option rights and other
special rights under the Finnish Companies Act entitling to
subscription of shares, such as the share units granted in
connection with the share award plan, are primarily considered as
subscription rights under the Transfer Tax Act, i.e. for the
purposes of transfer taxation they are viewed as securities. The
transfer tax liability with respect to employment based option
arrangements arises at the moment when the subscription right is
granted, but the amount of payable transfer tax can only be
determined upon exercising the right.
1.15 Certain Effects of the Tender Offer
Market for the Shares and ADSs. The purchase of Shares and ADSs
by the Offeror pursuant to the Tender Offer will reduce the number
of holders of Shares and ADSs and the number of Shares and ADSs
that might otherwise trade publicly, which could adversely affect
the liquidity and market value of the remaining Shares and ADSs
held by persons other than the Offeror. The Offeror cannot predict
whether the reduction in the number of Shares or ADSs that might
otherwise trade publicly would have an adverse or beneficial effect
on the market price for, or marketability of, the Shares or ADSs or
whether such reduction would cause future market prices to be
greater or less than the prices offered in this Tender Offer.
Stock Quotation. The Shares are quoted on Nasdaq Helsinki and
the ADSs are quoted on Nasdaq US. Upon consummation of the Tender
Offer, depending upon the aggregate market value and the number of
Equity Interests not purchased pursuant to the Tender Offer or any
subsequent open market or privately negotiated purchases, as well
as the number of public securityholders, the ADSs may no longer
meet the quantitative requirements for continued listing on Nasdaq
US and the Shares and ADSs may become eligible for deregistration
under the Exchange Act. We intend to apply for such deregistration
and delist the ADSs from Nasdaq US.
In addition, once we own all of the Equity Interests, it is our
intention that the Company will apply for termination of public
trading of Shares on the Nasdaq Helsinki and delist the Shares from
Nasdaq Helsinki.
According to the published guidelines of the Financial Industry
Regulatory Authority, the ADSs might no longer be eligible for
continued inclusion in Nasdaq US if, among other things, the number
of publicly-held ADSs falls below 500,000, the aggregate market
value of the publicly-held ADSs is less than USD 1 million, or
there are fewer than three market makers for the ADSs. ADSs held by
officers or directors of the Company or their immediate families,
or by any beneficial owner of 10 percent or more of the ADSs,
ordinarily will not be considered to be publicly-held for this
purpose.
If the Shares cease to be listed on the Nasdaq Helsinki or the
ADSs cease to be listed on the Nasdaq US, the market for the Shares
and ADSs could be adversely affected. It is possible that the
Shares or ADSs would be traded on other securities exchanges (with
trades published by such exchanges), The Nasdaq Capital Market, the
OTC Bulletin Board or in a local or regional over–the–counter
market. The extent of the public market for the Shares and ADSs and
the availability of such quotations would, however, depend upon the
number of holders of Shares and ADSs and the aggregate market value
of the Shares and ADSs remaining at such time, the interest in
maintaining a market in the Shares and ADSs on the part of
securities firms, the possible termination of registration of the
ADSs under the Exchange Act and other factors.
Exchange Act Registration. The Shares and the ADSs currently are
registered under the Exchange Act. The purchase of the Shares and
the ADSs pursuant to the Tender Offer may result in the Shares and
the ADSs becoming eligible for deregistration under the Exchange
Act. Registration of the Shares and the ADSs may be terminated by
the Company upon application to the SEC if the outstanding ADSs are
not listed on a "national securities exchange" and if there are
fewer than 300 holders of record of the Shares and the ADSs that
are U.S. residents.
We intend to seek to cause the Company to apply for termination
of registration of the Shares and the ADSs as soon as possible
after consummation of the Tender Offer if the requirements for
termination of registration are met. Termination of registration of
the Shares and the ADSs under the Exchange Act would reduce the
information required to be furnished by the Company to the holders
of Equity Interests and to the SEC and would make certain
provisions of the Exchange Act no longer applicable with respect to
the Shares and the ADSs. In addition, if the Shares and the ADSs
are no longer registered under the Exchange Act, the requirements
of Rule 13e–3 with respect to "going private" transactions would no
longer be applicable to the Company. Furthermore, the ability of
"affiliates" of the Company and persons holding "restricted
securities" of the Company to dispose of such securities pursuant
to Rule 144 under the U.S. Securities Act of 1933, as amended, may
be impaired or eliminated.
If registration of the Shares and the ADSs is not terminated
prior to any Subsequent Compulsory Redemption, then the
registration of the Shares and the ADSs under the Exchange Act will
be terminated following completion of the Subsequent Compulsory
Redemption.
1.16 Certain Legal Matters; Regulatory Approvals;
Description of SEC Relief
General. Except as described in this Section 1.16, the Offeror
is not aware of any pending legal proceeding relating to the Tender
Offer. Except as described in this Section 1.16, based on its
examination of publicly available information filed by the Company
with the SEC and other publicly available information concerning
the Company, the Offeror is not aware of any governmental license
or regulatory permit that appears to be material to the Company's
business that might be adversely affected by the Offeror's
acquisition of Equity Interests as contemplated herein or of any
approval or other action by any governmental, administrative or
regulatory authority or agency, domestic or foreign, that would be
required for the acquisition or ownership of Equity Interests by
the Offeror as contemplated herein. Should any such approval or
other action be required, the Offeror currently contemplates that,
except as described below under "Takeover Statutes," such approval
or other action will be sought. While the Offeror does not
currently intend to delay acceptance for payment of Equity
Interests tendered pursuant to the Tender Offer, pending the
outcome of any such matter, there can be no assurance that any such
approval or other action, if needed, would be obtained or would be
obtained without substantial conditions or that if such approvals
were not obtained or such other actions were not taken, adverse
consequences might not result to the Company's business, or certain
parts of the Company's business might not have to be disposed of,
any of which could cause the Offeror to elect to terminate the
Tender Offer without the purchase of Equity Interests thereunder
under certain conditions. See Section 1.2—"Conditions to Completion
of the Tender Offer."
U.S. State Takeover Statutes. A number of U.S. states (including
Delaware) have adopted takeover laws and regulations which purport,
to varying degrees, to be applicable to attempts to acquire
securities of corporations which are incorporated in such states or
which have substantial assets, stockholders, principal executive
offices or principal places of business therein ("State Takeover Laws").
The Offeror is not aware of any State Takeover Laws that are
applicable to the Tender Offer or potential Subsequent Compulsory
Redemption and has not attempted to comply with any such State
Takeover Laws. If any government official or third party should
seek to apply any such State Takeover Law to the Tender Offer or
potential Subsequent Compulsory Redemption or other business
combination between the Offeror or any of its affiliates and the
Company, the Offeror will take such action as then appears
desirable, which action may include challenging the applicability
or validity of such State Takeover Law in appropriate court
proceedings. In the event it is asserted that one or more State
Takeover Laws is applicable to the Tender Offer or potential
Subsequent Compulsory Redemption and an appropriate court does not
determine that it is inapplicable or invalid as applied to the
Tender Offer or potential Subsequent Compulsory Redemption, as
applicable, the Offeror might be required to file certain
information with, or to receive approvals from, the relevant state
authorities or holders of Equity Interests, and the Offeror might
be unable to accept for payment or pay for Equity Interests
tendered pursuant to the Tender Offer, or be delayed in continuing
or consummating the Tender Offer or potential Subsequent Compulsory
Redemption. In such case, the Offeror may not be obligated to
accept for payment or pay for any tendered Equity Interests. See
Section 1.2—"Conditions to Completion of the Tender Offer."
U.S. Antitrust Compliance. Under the Hart-Scott-Rodino Antitrust
Improvements Act of 1976 (the "HSR
Act"), and the related rules and regulations that have been
issued by the Federal Trade Commission (the "FTC"), certain transactions may not be consummated
until certain information and documentary material have been
furnished for review by the FTC and the Antitrust Division of the
U.S. Department of Justice (the "Antitrust
Division") and certain waiting period requirements have been
satisfied. These requirements apply to Offeror's acquisition of the
Equity Interests in the Tender Offer.
Under the HSR Act, the purchase of Equity Interests in the
Tender Offer may not be completed until the expiration of a
15–calendar–day waiting period which began when the Offeror filed a
Premerger Notification and Report Form under the HSR Act with the
FTC and the Antitrust Division on January 29, 2016. The required
waiting period with respect to the Tender Offer expired at 11:59
p.m., New York City Time, on February 16, 2016.
We believe that the only material regulatory filing required to
consummate the Tender Offer is the filing of the Premerger
Notification and Report Form pursuant to the HSR Act.
SEC No Action Relief. We have been granted no action and/or
exemptive relief by the SEC from certain of its otherwise
applicable rules to allow the Tender Offer to proceed in the manner
described in this Tender Offer Document. In particular, the SEC has
granted the following:
- relief from the provisions of Rule
14e-1(d) under the Exchange Act to permit the Offeror to announce
the preliminary results and any extension of the Offer Period on
the next Finnish banking day after the Expiration Date;
- relief from the provisions of Rule
14e-1(c) and Rule 14d-11(c) under the Exchange Act to permit the
Offeror to tender payment for the tendered Equity Interests within
six (6) Finnish banking days after the Expiration Date (and within
nine (9) Finnish banking days for Option Rights and Share Rights
that are held in certificated form) and to commence a Subsequent
Offer Period while settling the initial offering in this
manner;
- relief from the provisions of Rule
14d-11(d) under the Exchange Act to permit the Offeror to commence
a Subsequent Offer Period on the next Finnish banking day following
the announcement of the final results with respect to the Offer
Period; and
- relief from the provisions of Rule
14d-11(e) under the Exchange Act to permit the Offeror to accept
the Equity Interests tendered during a Subsequent Offer Period
period on a periodic basis (approximately every week) and to pay
for such Equity Interests within five (5) Finnish banking days
after the end of each weekly settlement, in accordance with Finnish
law and customary Finnish market practice.
1.17 Dividends and Distributions
As discussed in Section 3.4—"Summary of the Combination
Agreement—Undertakings" of the Tender Offer Document, the
Combination Agreement provides that from the date of the
Combination Agreement to the Closing Date, without the prior
written approval of the Offeror, the Company will not, and will not
allow its subsidiaries to make or implement any dividends, changes
in capitalization, transfer or encumbrance of treasury shares or
grant, transfer or disposal of any option rights for shares in the
Company.
1.18 Other Issues
The Offeror reserves the right to amend the terms and
conditions of the Tender Offer in accordance with Chapter 11,
Section 15, Subsection 2 of the Finnish Securities Market Act and
other applicable law, including U.S. tender offer rules, and
subject to the terms and conditions of the Combination Agreement
and this Tender Offer Document.
Subject to the Combination Agreement, the Offeror reserves
the right to extend the Offer Period and to amend the terms and
conditions of the Tender Offer (including a potential withdrawal of
the Tender Offer) in accordance with Chapter 11, Section 17 of the
Finnish Securities Market Act if, during the Offer Period or any
Subsequent Offer Period, a third party announces a competing public
tender offer for the Equity Interests.
The Offeror will have sole discretion to determine all
other issues relating to the Tender Offer, subject to the
requirements of applicable Finnish and United States law and
subject to the Combination Agreement.
The Tender Offer will not be made directly or indirectly in any
jurisdiction where prohibited by applicable law or where any
document, registration or other requirement would be necessary in
addition to those required by the applicable law in Finland and the
United States.
This Tender Offer Document and related materials, including the
Letter of Transmittal and Acceptance Forms, will not and may not be
distributed, forwarded or transmitted into or from any jurisdiction
where prohibited by applicable law by any means whatsoever
including, without limitation, mail, facsimile transmission, e-mail
or telephone. In particular, the Tender Offer is not being made,
directly or indirectly, in or into, Canada, Japan, Australia, South
Africa or Hong Kong or any other jurisdiction where prohibited by
law. The Tender Offer cannot be accepted by any such use, means or
instrumentality or from within Canada, Japan, Australia, South
Africa or Hong Kong or any other jurisdiction where prohibited by
law.
No person has been authorized to give any information or to make
any representation on behalf of the Offeror not contained herein,
in the Letter of Transmittal or in the Acceptance Forms and, if
given or made, such information or representation must not be
relied upon as having been authorized.
View source
version on businesswire.com: http://www.businesswire.com/news/home/20160310005772/en/
Acorda Therapeutics, Inc.Felicia Vonella, 914 326
5146fvonella@acorda.com
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