TORONTO (Reuters) - A backlash against a management-led buyout of Tuckamore Capital Management Inc TX.TO grew on Wednesday, with another large investor JC Clark Ltd stating that it plans to vote the shares it controls against the proposed deal.
Two large sets of investors that control some 20 percent of the shares of Tuckamore Capital went public on Tuesday with their discontent over the management-led buyout of the firm that is being sponsored by private equity firm Birch Hill.
JC Clark, which controls more than 8 percent of Tuckamore's shares, said the 75 Canadian cent per share price being offered, substantially undervalues Tuckamore and is inadequate.
Tuckamore announced in early May that its senior management, along with the support of Birch Hill Equity Partners, had agreed to acquire the firm in a deal that valued the holding firm that invests in early- and mid-stage private companies at around C$60 million ($55 million).
Earlier this week, two large investors, Access Holdings and Canso Investment Counsel, said they plan to vote against the deal.
Access said on Wednesday it has filed a complaint about the deal before the Ontario Securities Commission, alleging that it runs afoul of capital market rules and that the terms of the deal were abusive to non-management shareholders of Tuckamore.
A spokesman for Tuckamore declined to comment.
($1 = 1.0853 Canadian Dollars)
Reporting by Euan Rocha; Editing by Grant McCool