Canso Investment Counsel Ltd has informed the board of directors of Tuckamore Capital Management that it will vote against the proposed take-private acquisition of the Toronto-based private equity firm. The deal, announced in May, would see Birch Hill Equity Partners and members of the firm’s senior management team buy all of Tuckamore’s shares for $0.75 per share, or an estimated $60 million. Canso, which owns or controls 14.6 percent of the common shares of Tuckamore, said the offer “significantly undervalues the company.” Access Holdings Management Co has also issued a statement opposing the transaction, which will be voted on by shareholders in July.
Canso Investment Counsel Ltd. to Vote Against Proposed Arrangement by Tuckamore Capital Management Inc.
RICHMOND HILL, ONTARIO–(Marketwired – June 23, 2014) – Canso Investment Counsel Ltd. (“Canso”) today informed the Board of Directors of Tuckamore Capital Management Inc. (“Tuckamore”) of its intention to vote against the plan of arrangement whereby certain members of Tuckamore management together with certain funds of Birch Hill Equity Partners have offered to acquire all of the shares of Tuckamore for $0.75 per share subject to certain conditions.
Canso, on behalf of certain clients and funds, owns or controls 14.6% (12.5% fully diluted) of the common shares of Tuckamore. Canso believes the $0.75 per share offer price for Tuckamore is inadequate and significantly undervalues the company. Accordingly, Canso intends to vote against the plan of arrangement.
Canso’s objective is to maximize the long term value of its holdings in Tuckamore and believes this objective is currently best met by keeping Tuckamore as a public company. Canso will consider all appropriate actions, including among other actions, exercising its rights of dissent as afforded under corporate law.
Canso Investment Counsel Ltd.
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