A 'Tender Offer' is an official proposal by a company to repurchase its own shares or other specific securities directly from the shareholders.
A company has multiple avenues to buy back its securities:
- From Shareholders through Tender Offer: Here, shares or other securities are repurchased from existing holders based on a proportionate basis.
- From Open Market: The company might opt to buy back:
- Through a book-building process.
- Via a stock exchange.
- From Odd-lot Holders: This pertains to shareholders holding a non-standard or smaller number of shares.