SiriusXM Canada Says Slaight, CBC Agree To Take Cash Only In Privatization Deal
August 11, 2016 at 4:24 AM (PT)
SIRIUS XM CANADA HOLDINGS, INC. continues to push its plan to go private with an announcement that two major shareholders say they'll vote to approve the transaction and will take only cash consideration as the company proceeds with the recapitalization plan.
The company says that SLAIGHT COMMUNICATIONS and the CBC, which together own about 22.5% of the company's shares, will vote in favor of the plan at the upcoming shareholders' meeting and will take cash, increasing the percentage of shares (as opposed to cash) in the transaction available to other shareholders in the deal from about 50% to about 74%, representing a current value of approximately C$4.83 per Class A share if all remaining shareholders elect the maximum share consideration.
The company also called a recent press release from dissident shareholders "entirely without merit and mischaracterizes important facts and circumstances underlying the transaction." SIRIUSXM said that the dissidents' characterization of the methodology used in the independent formal valuation and fairness opinions arranged by the company was incorrect and that the deal is "fair from a financial point of view to minority shareholders."