Globe/CP say Aphria-Tilray combo gets proxy adviser OK
2021-04-06 08:30 ET - In the News
The Globe and Mail reports in its Tuesday edition that ISS and Glass Lewis are recommending Aphria shareholders vote in favour of the Tilray merger. A Canadian Press dispatch to The Globe says that the proxy advisers said Monday that they support the deal announced in December. The deal will see Leamington, Ont.'s, Aphria receive 0.8381 share of Nanaimo, B.C.'s, Tilray for each Aphria common share. The deal appears "sound" because it will deliver $100-million in pretax cost synergies, ISS said. It believes the merger will create the world's largest cannabis business based on pro forma revenues and still leave the combined company with room to grow in Canada, the United States and Europe. "The operations of the combined company in Europe should provide a unique combination of in-country cultivation and distribution licences as well as the capability to export medical cannabis products within the EU on a tariff-free basis," ISS said. Meanwhile, Glass Lewis conducted an independent review of the transaction and believes the deal was structured fairly and reasonably and is favourable to Aphria shareholders. "We are of the view that the transaction represents a favourable risk/reward for Aphria shareholders," it said.
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