---
title: "Modelling a tender offer (TEND)"
slug: "modelling-a-tender-offer-tend"
updated: 2026-08-04T11:29:52Z
published: 2026-08-04T11:29:52Z
canonical: "support.lusid.com/modelling-a-tender-offer-tend"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://support.lusid.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Modelling a tender offer (TEND)

You can model a tender offer from a third party as a corporate action of type `TenderEvent` in LUSID. [See all supported corporate actions](/v1/docs/understanding-dedicated-corporate-action-events).

Note the following:

- `TenderEvent` is valid for instruments of type `Equity`, `SimpleInstrument`, `Bond`, `ComplexBond` and `InflationLinkedBond`.
- The entitlement date is the `exDate` specified when you load `TenderEvent`.
- Amounts are calculated from the total number of instrument units held on the entitlement date, settled and unsettled.
- Every `TenderEvent` requires a `newInstrument`, even when the outcome is a pure cash tender with no security movement. You can supply the underlying instrument itself as a placeholder in this case.
- The transaction dates and settlement dates of automatically-generated output transactions are `paymentDate`.

## Loading `TenderEvent`

You must load `TenderEvent` into a corporate action source registered with one or more portfolios. The event then impacts every registered portfolio with a holding in the underlying instrument. [See how to do this](/v1/docs/how-do-i-upload-corporate-actions-to-a-corporate-action-source).

For more information on fields, see the [TenderEvent](https://www.lusid.com/docs/api/lusid/schemas/TenderEvent/) schema. Where set, the following date validation rules apply: `exDate ≤ earlyResponseDeadline ≤ responseDeadlineDate ≤ marketDeadlineDate ≤ paymentDate`

You must choose **one** of the following participation types:

| Participation type | Election(s) | Election choices | Further action required? |
| --- | --- | --- | --- |
| `Mandatory` | Exactly one `SecurityOfferElection`, `CashOfferElection` or `CashAndSecurityOfferElection`. | Set the following on the single election: ✅ **Is chosen** ✅ **Is declared** ✅ **Is default** | ❌ No. The single election always occurs automatically. |
| `Voluntary` | One or more elections, of different types, each with a unique key. | The above options must be set but can be in any combination on any election. | ❓Optional. The **Is Chosen** election occurs unless you instruct to choose a different settlement method per portfolio (see below). |

Note there is no silent lapse outcome; a holder who takes no action always receives the chosen settlement rather than forfeiting the offer.

## Instructing to choose a different settlement per portfolio

If you load `TenderEvent` as `Voluntary`, you can instruct to choose a different settlement. If you do not, you receive the chosen settlement.

To do this, load an *event instruction* into a portfolio. Note this is not an event, and you do not load it into a corporate action source, which means you can instruct different settlements in different portfolios. [See how to do this](/v1/docs/loading-an-event-instruction-to-override-an-instrument-event-for-a-particular-portfolio).

## Configuring the economic impact

You must create some or all of the following transaction types to handle automatically-generated output transactions. They are not provided for you.

| Transaction type (click for our recommendation) | Implement the transaction type if… | Intended economic impact |
| --- | --- | --- |
| [TenderRemoveExisting](/v1/docs/recommended-transaction-types-for-corporate-action-events#tenderremoveexisting-transaction-type) | `SecurityOfferElection` is chosen | Debits the existing instrument holding at cost. |
| [TenderAdjustCost](/v1/docs/recommended-transaction-types-for-corporate-action-events#tenderadjustcost-transaction-type) | `CashAndSecurityOfferElection` is chosen | Re-allocates cost using the election’s `costFactor` to split between the cash and security legs. |
| [TenderReceiveCash](/v1/docs/recommended-transaction-types-for-corporate-action-events#tenderreceivecash-transaction-type) | Either `CashOfferElection` or `CashAndSecurityOfferElection` is chosen | Credits cash at the offer price. |
| [TenderReceiveUnits](/v1/docs/recommended-transaction-types-for-corporate-action-events#tenderreceiveunits-transaction-type) | Either `SecurityOfferElection` or `CashAndSecurityOfferElection` is chosen | Credits the new instrument holding. |
| [TenderCashInLieu](/v1/docs/recommended-transaction-types-for-corporate-action-events#tendercashinlieu-transaction-type) | There are fractional units remaining and the loaded event sets: - `fractionalUnitsCashPrice ≠ null` - `fractionalUnitsCashCurrency ≠ null` | Settles a fractional remainder in cash if `fractionalUnitsRoundingConvention ≠ BuyUp` |
| [TenderBuyUp](/v1/docs/recommended-transaction-types-for-corporate-action-events#tenderbuyup-transaction-type) | There are fractional units remaining and the loaded event sets: - `fractionalUnitsRoundingConvention = BuyUp` - `fractionalUnitsCashPrice ≠ null` - `fractionalUnitsCashCurrency ≠ null` | Rounds a fractional remainder up to a full unit and settles the price difference in cash. |
| [TenderEventCashAccrued](/v1/docs/recommended-transaction-types-for-corporate-action-events#tendereventcashaccrued-transaction-type) | Underlying instrument is `Bond`, `ComplexBond` or `InflationLinkedBond` and either `CashOfferElection` or `CashAndSecurityOfferElection` is chosen | Pays accrued interest on the tendered face, separate to the principal proceeds. |

You can give a transaction type any economic impact you like. Depending on the election type, our recommendations:

- Create or update a cash holding in the chosen currency.
- Reports realised gain/loss on a cash-settled leg using the `ProfitAndLoss/Realised/Market` [metric](/v1/docs/what-is-a-metric).
- Reports bond accrued interest as income using the `ProfitAndLoss/Total/Other` metric.
- Passes cost through to the new position on a security-offer leg, so there is no `ProfitAndLoss/Realised/Market` impact at the point of exchange.

## Reference example

```json
[
  {
    "instrumentEventId": "TEND-ACMECORP-2026",
    "instrumentIdentifiers": {
      "Instrument/default/ClientInternal": "ACMECORP-EQ"
    },
    "description": "Tender offer - Acme Corp (Voluntary, three election types)",
    "participationType": "Voluntary",
    "instrumentEvent": {
      "instrumentEventType": "TenderEvent",
      "exDate": "2026-08-01T00:00:00.0000000+00:00",
      "paymentDate": "2026-08-15T00:00:00.0000000+00:00",
      "newInstrument": {
        "instrumentIdentifiers": {
          "Instrument/default/ClientInternal": "ACMECORP-NEWCO"
        }
      },
      "securityOfferElections": [
        {
          "electionKey": "SECU",
          "isDefault": false,
          "isChosen": false,
          "unitsRatio": { "input": 1.0, "output": 1.15 }
        }
      ],
      "cashOfferElections": [
        {
          "electionKey": "CASH",
          "isDefault": true,
          "isChosen": false,
          "cashOfferPrice": 50.00,
          "cashOfferCurrency": "USD"
        }
      ],
      "cashAndSecurityOfferElections": [
        {
          "electionKey": "CASE",
          "isDefault": false,
          "isChosen": false,
          "cashOfferPrice": 20.00,
          "cashOfferCurrency": "USD",
          "unitsRatio": { "input": 1.0, "output": 0.5 }
        }
      ]
    }
  }
]
```