Here's Why Shares of Qiwi Are Down 9% Today

Here's Why Shares of Qiwi Are Down 9% Today

Following the termination of a tender offer, shares of Russian payment service provider Qiwi (NASDAQ: Qiwi) have tumbled, falling about 9% as of 3:00 p.m. EDT.

On June 19, Otkritie Holding JSC and Otkritie Investment Cyprus Limited commenced a tender offer to buy up to 24,794,253 shares of Qiwi for $28 per share, a significant premium to the then-current share price. If successful, the offer would have given the two would-be buyers a majority stake in Qiwi, effectively taking the company private.

The tender offer expired at midnight on Friday, July 14, and at that time, only 12,539,256 shares had been tendered, significantly less than the minimum of 20,286,207 that Otkritie required in order to proceed. As a result, the offer has been terminated, according to a press release from Otkritie.

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Source: Fool.com