In a move to entice shareholders, Ritchie Bros Auctioneers said Tuesday that would pay a special dividend of $1.08 per share if they vote to approve the company’s $7 billion acquisition of US auto retailer IAA Inc.
The merger would give Ritchie an entry point into the heavy machinery and equipment market, along with salvaged cars, trucks and motorcycles.
Shareholders of both companies are expected to vote on March 14, with the deal to close on March 20.
The move is not without opposition though. Ritchie shareholders including Luxor Capital Group, Eminence Capital, Deep Field Asset Management and Janus Henderson Investors have opposed the deal.
Meanwhile, proxy advisory firms Institutional Shareholder Services and Glass Lewis recommended that shareholders reject the deal, arguing its risks outweigh its potential benefits.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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