Shareholders of Canada's Ritchie Bros support deal with IAA (updated)

RB Global

14/03/2023 17:01

(Adds deal details, background, shares)
       March 14 (Reuters) - Canada's Ritchie Bros Auctioneers
 RBA.TO  said on Tuesday its shareholders voted in favor of its
$7 billion acquisition of U.S. auto retailer IAA Inc  IAA.N ,
according to a preliminary tally.
        The cash-and-stock deal, 
    first announced
     in November, has become one of the year's most 
    contested
     in the United States.
  
        Ritchie's shareholders including Luxor Capital Group and
Eminence Capital had opposed the deal. 
  
        Proxy advisory firms Institutional Shareholder Services
and Glass Lewis also recommended that shareholders reject the
deal, citing potential risks. However, proxy firm Egan-Jones
Proxy Services earlier this month recommended to vote for the
deal.
  
        Ritchie Bros on Jan. 23 sweetened the cash component of
its buyout offer for IAA by 28%, valuing the U.S. auto retailer
at $5.94 billion, and also secured the backing of a key IAA
shareholder who had questioned the initial offer.
  
        IAA stockholders will receive $12.80 per share in cash
and 0.5252 common shares of Ritchie Bros for each share of IAA
common stock they own.
  
        Upon completion of the deal, IAA stockholders will own
37.2% of the combined company and Ritchie Bros shareholders the
remaining 62.8%.
  
        For Ritchie Bros, which auctions and sells used heavy
industrial equipment, the acquisition is intended to diversify
its customer base, giving it a bigger footprint in vehicle
re-marketing, and help cut costs.
  
        On Tuesday, shares of IAA were up 1.8% at $40.9, while
U.S.-listed stock of Ritchie Bros was up 0.7% at $54.8.
  

 (Reporting by Aishwarya Nair and Kannaki Deka in Bengaluru;
Editing by Devika Syamnath and Maju Samuel)
 ((Aishwarya.Nair@thomsonreuters.com; +91-9167838937 Twitter: https://twitter.com/Aishwaryartrs
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