Curaleaf Plans $4-a-Share Bid for Aurora, Taking 0.3463 Shares Plus $0.75 Directly to Holders
Updated
Updated · mg Magazine · Aug 12
Curaleaf Plans $4-a-Share Bid for Aurora, Taking 0.3463 Shares Plus $0.75 Directly to Holders
3 articles · Updated · mg Magazine · Aug 12
Summary
Curaleaf said it intends to make an unsolicited offer for all Aurora shares, valuing the proposal at an implied US$4 per share, capped at US$5 if Curaleaf stock rises sharply before take-up.
Aurora said no formal bid has begun and disputed Curaleaf’s claim that it had been stonewalled, saying only a July 7 letter included financial terms and that its lead independent director stayed in contact with Curaleaf through July 24.
Aurora is forming a special committee of independent directors rather than rejecting the approach outright, leaving open whether the campaign turns into a negotiated deal or fails to win enough shareholder support.
Aurora shares closed at US$3.48 after the dueling announcements, up about 20% from US$2.89 but still below Curaleaf’s stated value, signaling investors see meaningful execution risk.
CAD$149.1 million of cash and no debt give Aurora room to deliberate despite a 9% revenue decline, while past Canadian cannabis hostile bids have split between Aurora’s successful sweetened CanniMed pursuit and Green Growth’s failed Aphria bid.