The definition of OPA refers to the acronym of takeover bid. It is a stock market operation for which a company or person makes an offer for the acquisition of all or part of the shares of a listed entity. bag at a specific price.
OPAs are operations motivated by exceptional demands for shares and facilitate the purchase of a significant number of shares in a company in an organized and fast manner. If done through ordinary operations on the stock market, the acquisition price would be much more expensive, since the continued demand would raise the value of the share excessively.
What is a takeover bid?
The OPA concept fulfills two basic functions, such as allowing the acquirer to obtain a large number of shares at a specific price and at a given time, and it also allows all shareholders to sell under the same conditions.
For these to go to the offer and sell their shares, the price offered in the OPA is higher than the market price at that moment, between 10 and 20%.
Types of OPA
Depending on the objectives and particularities, there are the following types of OPA:
- Friendly takeover bid: they are presented after there is an agreement between the offering company and the significant shareholders or the board of directors of the offered entity.
- Hostile takeover bid: in this case there is no prior agreement, although it does not indicate that it is interesting for shareholders.
- Mandatory tender offer: they are carried out for all the shares of the company at an equitable price and are not subject to any conditions.
- Voluntary takeover bid: they do not depend on legal requirements of price or number of shares. The bidder can mark conditions.
- Takeover bid: the objective is that the shareholders of the opaque company can market their actions at fair value once the offering company has control of the opaque company.
- Grandpa de exclusión: It is intended to allow shareholders to sell their shares before the company goes public.
- Competitive takeover bid: occurs when the offer affects securities on which a bid has already been submitted, where the acceptance period has not yet expired.