RE: MBLY Tender [C] [I]
HI Rich — we're reaching out as Southern Financial holds 800 MBLY in account ending x804. As you likely saw - there is an MBLY currently tender offer that is set to expire on 6/16/17, for which a mailing should have been sent to you over the last few weeks. Regardless, we wanted to make sure the details were in front of you in case you had questions.
Long story short — the tender was set at $63.54 per share for holders of Mobileye, N.V. (details are attached). The offer is subject to Israeli withholding tax of 25% unless holders provide an affidavit that they are exempt. Holders who are EXEMPT from Israeli tax must declare so by fully completing the attached Israeli Tax Declaration form to avoid the withholding.
If you believe that Southern Financial is exempt — please complete and send us the Tax Declaration Form. The deadline to instruct and submit paperwork will be on or around 6/16/17.
A few key points:
Part I, section 7 (Contact Details): This is normally the beneficially owner.
Part I, section 8. Select "through a Broker", and write in Pershing, LLC
Part II, Be sure this is fully completed in the proper category (individual, corporation, partnership, or trust.)
Part III: DO NOT COMPLETE—unless you are an Israeli Bank, Broker of Financial Institution.
Part IV: Beneficial owner must sign. Unclear whether Power or Attorney or Authorized Individual will be recognized
Part IV: Don't forget to enter number of shares!
I will be traveling over the next two weeks, so please make sure to CC this group in case you have any questions.
Thank you,
Vahe
Vahe Stepanian
Key Client Partners
Deutsche Bank Securities Inc.
if we do nothing what will happen?
please advise
thank you
Richard Kahn
HBRK Associates Inc.
575 Lexington Avenue 4th Floor
New York, NY 10022
Did either of you go back to him?
This is what is on Pershing's IFA system. It would appear the client is not a resident of Israel, and therefore would be subject to the max withholding date of 25%. It would also appear the shares will be delisted and if they choose not to participate by not filing any paperwork, then they will get nothing. So it would appear their best course of action would be to elect into the tender and if they are going to be subject to the max withholding rate then they might as well file as such going in.
Zigs/Donnie — who should we call to get the answer to this question?
Vahe,
Ask Chris Harvey please (...without the client). He might be able to direct you.
Thanks
Zbynek "Ziggy" Kozelsky
Director I Branch Administrative Manager
Key Client Partners - Americas
Deutsche Bank Securities Inc.
Deutsche Asset & Wealth Management
345 Park Avenue, 26th Floor
New York, NY 10154
Hi Chris — can you help with the below?
Long story short — I reached out to a client who is a holder of MBLY. The company has a voluntary tender out there and the client asked what happens if they don't tender their shares?
Will they potentially be hit by the withholding tax regardless?
Note that my reading of the doc shows that they will not end up with nothing if they do not tender. But once the tender goes through, there is a delay before they will get anything, and they would still be subject to the tax withholding.
Thanks again for this Chris, and apologies (again) for missing this email.
Can the client simply sell his position in markets to avoid this process?
For our records — we spoke to Rich today and walked him through his various options as it relates to MBLY. He thought that selling the 800 MBLY shares in his account will likely be the best path forward given the small size of the position — but he will confirm with us in the next few days.
Agreed. Thanks
From: Vahe Stepanian
Sent: Monday, May 15, 2017 1:06 PM
To: Stewart Oldfield
Subject: FW: MBLY Tender [C] [I]
For our records — we spoke to Rich today and walked him through his various options as it relates to MBLY. He thought that selling the 800 MBLY shares in his account will likely be the best path forward given the small size of the position — but he will confirm with us in the next few days.