Proxy advisory firm Egan-Jones recommends Ritchie Bros. shareholders back IAA deal
VANCOUVER — Proxy advisory firm Egan-Jones is recommending shareholders of Ritchie Bros. Auctioneers Inc. support the company's deal to buy U.S. automotive salvage company IAA Inc.
In its assessment, the firm says the advantages of the deal outweigh the benefits of remaining as a stand-alone company and that the merger sets a realistic approach to shareholder value creation and maximization in the long-run.
The recommendation comes ahead of shareholder votes at Ritchie Bros. and IAA set for March 14.
Several Ritchie Bros. shareholders have expressed concerns about the deal and announced plans to vote against the agreement which requires approval by shareholders of both companies.
The Egan-Jones report contrasts recommendations by fellow price advisory service firms Institutional Shareholder Services and Glass Lewis that both recommended shareholders vote against the deal.
Ritchie Bros. has said the transaction is expected to unlock "substantial additional value" that neither company could achieve on its own.
This report by The Canadian Press was first published March 7, 2023.
Companies in this story: (TSX:RBA)
The Canadian Press