May 6, 2019 / 1:36 PM / 14 days ago

UPDATE 1-Acreage shareholder Marcato to vote against deal with Canopy Growth

(Adds details from Marcato’s letter)

May 6 (Reuters) - Acreage Holdings Inc shareholder Marcato Capital Management LP said on Monday it would vote against the company’s proposed $3.4 billion deal with Canopy Growth Corp.

The asset manager, in a letter sent to Acreage’s board, said the company’s “strategic value as one of the few multi-state operators of scale in the U.S., with leading positions in the most valuable markets merits a significant premium to any stand-alone cash-flow derived valuation.”

Canopy Growth said in April it had secured the right to buy Acreage once the United States legalizes the production and sale of cannabis.

According to Marcato, which holds a 2.7 percent stake in Acreage, the bid by Canopy undervalues the company.

Marcato said it would prefer either the company remaining independent or if the board insists on pursuing a sale, they have to run a separate process.

Canopy Growth and Acreage were not immediately available for comment. (Reporting by Debroop Roy in Bengaluru; Editing by James Emmanuel)

0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below