Offers of a stock corporation can be of different nature. Each of these offers requires an instruction on your part if you wish to accept it. Rejection of the offer, on the other hand, doesn’t require any instruction. A distinction is made between the following offers:
I. Takeover Offer
A takeover bid occurs, for example, when a company buys a stock corporation. It’s the official and public offer of a company to the shareholders of a stock corporation to buy the company's stocks at a fixed price.
The price is usually considerably higher than the last stock price. The submission of a takeover bid is mandatory in Germany as soon as a shareholder owns more than 30 percent of a stock corporation.
In your profile, you will be provided with a corresponding instruction form in good time.
If you wish to accept the offer, return the signed document to us in due time. If you wish to reject the offer, no further action is required on your part.
II. exchange offer
The background of an exchange offer is the same as for the takeover offer (see above). However, here no purchase but an exchange of the stocks of the takeover target (the acquired company) is offered.
A corresponding instruction form will be made available to you in your profile in good time. If you wish to accept the offer, please return your instructions to us in due time. If you wish to reject the offer, no further action is necessary on your part.
III. Pre-emptive subscription
A preferential subscription is an offer by a stock corporation to its shareholders to purchase newly issued (so-called new) stocks or stocks of a subsidiary on a preferential basis at a fixed price.
A certain quota of the new stocks is reserved for the preferred shareholders. The respective subscription ratio is also calculated on the basis of this quota. The subscription ratio indicates how many subscription rights you need to purchase one new stock.
A corresponding instruction form will be made available to you in your profile in good time. If you wish to accept the offer, please return the signed document to us in due time. If you wish to reject the offer, no further action is required on your part.
IV. Stock buyback offer
In a stock buyback, a corporation buys back its own stocks from its shareholders. The company has two options here.
Either it acquires the stocks directly via the market, i.e. the stock exchange, or it makes a public offer to buy them back. Such an offer can influence the price of the security in the short term, and it usually contains a premium on the current stock market price.
In your profile, you’ll be provided with a corresponding instruction form in due time. If you wish to accept the offer, return the signed document to us in due time. If you wish to reject the offer, no further action is necessary on your part.
Instruction costs
The standard instruction in this case is the declination of the offer for which 1 EUR will be charged. For processing a specific instruction Trade Republic charges a fee of 5.00 EUR according to the List of Prices and Services.