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  5. ILLM: I received a long letter from BMO asking for a decision of "offer to purchase". [illumin Holdings Inc.]
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Q: I received a long letter from BMO asking for a decision of "offer to purchase". And that i must respond by August 25. What is your advice please? And must I phone BMO either way,?
Much thanks as always
Asked by El-ann on August 15, 2023
5i Research Answer:

ILLM is doing a Dutch Auction to buyback a block of shares. It has too much cash for its needs, and is going to cancel shares to increase its per-share earnings leverage. In most cases, we prefer NOT to tender to these deals, as the company believes in its shares and is backing this up with dollars. If things go well then per-share earnings leverage increases. Once decided, while it is not 100% needed for a 'do not tender' option, we would still contact the broker to avoid any misunderstanding with one's intentions.