Highlights
- A long-standing transfer agent client sought EQ’s corporate actions expertise for a complex exchange offer with a share value worth billions of dollars.
- With approximately 1,000 shareholder entities that needed to receive communications about the exchange offer, EQ experts across multiple teams determined a tailored solution to encourage shareholder participation success, and reduce the complexities of submitting shareholder documentation and exchange offer elections.
- The client was extremely satisfied with EQ’s solution, as it achieved substantial shareholder participation, including involvement from the client’s largest shareholders.
Situation
A long-standing transfer agent client with a large, international presence sought EQ's corporate actions expertise for a complex exchange offer. This corporate action involved a share value worth billions of dollars, multiple shareholders and required timely processing of large volumes of transactions within a tight timeframe. It also required unique documentation to be submitted by shareholders.
Client challenges:
- Complex exchange offer transaction involving management of multiple classes of shares.
- Large global shareholder base and shareholder entities.
- Unique market requirements and timings due to multiple classes of shares being offered.
What did the transaction involve?
- Approximately 1,000 shareholders.
- Multiple EQ U.S. business services and supporting teams contributed to this transaction.
- Months of strategic planning and a 4-week transaction period.
This complex exchange offer had a very technical and intricate transaction process that required the management of a complex series of corporate actions, and creation of a dedicated online platform to gather shareholders' exchange elections and documentation.
Solution
EQ teams collaborated to devise a plan of action
This corporate action required a cross-functional team of EQ experts across transfer agent and information agent teams, as well as supporting administrative teams in corporate actions, finance, technology, processing, correspondence and data to support the complex transaction. The team worked in collaboration with the client to provide a tailored solution that:
- Communicated the exchange offer election process.
- Provided an electronic submission process for the exchange offer letters of transmittal.
- Trained call center specifically to answer shareholder inquiries on this transaction.
EQ delivered a tailored solution to encourage shareholder participation
The EQ team developed a secure, end-to-end solution for shareholders to submit their required documentation and exchange elections seamlessly online to save time while maintaining accuracy and efficiency. With over 200 million shares to be processed in a tight four-week window, the platform eliminated the wait for physically mailed exchange offer letters of transmittal. As the client wanted a high participation rate to the exchange offer, the shareholder-facing website also communicated the details of the complex corporate action and gave explicit instructions on how shareholders could participate. EQ equipped a dedicated team of call center experts with helpful resources via multiple channels including video calls, emails and an e-library, so that they were prepared to provide thorough information to shareholders. EQ’s call center teams were also trained to address specific shareholder inquiries, like how to calculate conversion rates, whether there were any trade restrictions and what payment options were available. The client also hosted a shareholder-facing conference call that included their EQ relationship manager, who addressed questions related to the exchange.
Results
With EQ’s relationship management team’s industry experience, combined with the expertise of the corporate actions team and the seamless execution of the transfer agent operations teams, the client was extremely satisfied with EQ’s ability to execute this complex transaction. The exchange offer achieved substantial shareholder participation, including involvement from the client’s largest shareholders. The collaboration across EQ was not just a logistical move but a strategic one that provided valuable information to the client’s shareholders. It's a testament to the importance of effective collaboration, seamless execution and how it can support shareholder satisfaction.
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