Canada's Ritchie to pay special dividend to investors who back $7-bln IAA deal

RB Global

07/03/2023 13:40

March 7 (Reuters) - Canada's Ritchie Bros Auctioneers
 RBA.TO  said on Tuesday it would pay a special dividend of
$1.08 per share to its investors if they back its $7-billion
deal for U.S. auto retailer IAA Inc  IAA.N .
    Shareholders of both the companies are set to vote on March
14 on the deal that will allow Ritchie to tap into a growing
market for heavy machinery and equipment, salvaged cars, trucks
and motorcycles.
    However, Ritchie's shareholders including Luxor Capital
Group, Eminence Capital, Deep Field Asset Management and Janus
Henderson Investors have opposed the deal. 
    The latest move by Ritchie comes after proxy advisory firms
Institutional Shareholder Services and Glass Lewis recommended
that shareholders reject the deal, citing potential risks.
 urn:newsml:reuters.com:*:nL1N35E0XD
    The dividend will be paid subject to receipt of required
shareholder approvals of the merger, Ritchie said adding that
IAA shareholders will not be entitled to receive it.  
    The deal is expected to close on March 20. 


    

 (Reporting by Aishwarya Nair in Bengaluru; Editing by Arun
Koyyur)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
 ;))