By Ketki Saxena
Investing.com – Ritchie Bros. Auctioneers Inc shareholders have approved the company's deal to buy U.S. automotive salvage company IAA Inc. at a meeting today.
The results are preliminary and the specific results have not been released.
Ritchie Bros has offered US$12.80 per share in cash and 52.52% of a Ritchie Bros share for each IAA share. The company also planned to pay a special one-time dividend of US$1.08 to its existing shareholders if the deal was approved.
The approval of the deal follows months of criticism from shareholders.
Proxy adviser Institutional Shareholder Services Inc. had advised that Ritchie Bros “strong standalone prospects, proven over a period of time through robust performance, offer a better understood and verified path to shareholder value creation. Proxy adviser Glass Lewis & Co. also said investors should turn down the transaction.
Investment firms Luxor Capital Group LP and Janus Investment Investors both also voiced their opposition to the deal
Egan Jones meanwhile recommended a yes vote from the shareholders, noting that the merger set a realistic approach to shareholder value creation and maximization in the long-run.