Webco Industries, Inc. (OTC: WEBC) bought 11,382 shares for $3.76 million in a completed tender offer, exceeding its original share amount after choosing to accept additional shareholder tenders.
The company said Oct. 16 that it paid $330 for each common share, bringing the total cost to $3,756,060. The offer covered shares held as of Sept. 30 and expired at 11:59 p.m. Eastern Daylight Time Oct. 14.
Webco announced the offer on Sept. 30, the date it used to determine eligible holdings. The transaction concluded two weeks later, with the completion announcement following on Oct. 16.
The final purchase was 1,382 shares, or 13.82%, above the 10,000-share amount set at launch. At the offer price, that initial amount represented $3.3 million; accepting the additional shares added $456,060 to the purchase cost.
For an oversubscribed offer, holders with no more than 99 shares who submitted their entire holdings had priority. Webco said purchases beyond that group would be allocated pro rata among other tendering shareholders. In other words, those remaining purchases were to be divided in proportion to the shares submitted by those holders.
The completion announcement did not disclose the total number of shares submitted or a final proration rate. It also did not explain how the additional purchases were handled under the allocation terms announced at launch.
Webco said its directors viewed the tender as a faster exit route for shareholders. The company cited limited trading in its stock and the gap between quoted buying and selling prices as factors behind that rationale.
Webco makes tubing from carbon steel, stainless steel and other metals. The company lists five tube-making plants in Oklahoma and Pennsylvania, plus eight sites for value-added work across Oklahoma, Illinois, Michigan, Pennsylvania and Texas.
The tender offer came while Webco's traditional stock repurchase program was suspended. The company said permitted activity under that program was scheduled to resume Oct. 17.
