Aphria Board of Directors Unanimously Reject “Undervalued” Takeover Bid by Green Growth Brands
Aphria Inc.
(NYSE: APHA) announced on February 6th that the Board of Directors has rejected the hostile take-over bid by Green Growth Brands. Green Growth Brands issued the bid on January 23rd and provided a window of time that lasted until May 9th of this year. Aphria shareholders would have received 1.5714 common shares of Green Growth per share of Aphria. With the unanimous decision by the board of directors to reject the bid from Green Growth Brands, it is now calling for Aphria shareholders to not tender their shares and take no action.
In a statement by Irwin D. Simon, Aphria’s independent Board Chair: “The Aphria Board of Directors unanimously believes that GGB’s hostile offer is significantly undervalued and inadequate and not in the interest of Aphria shareholders on multiple grounds.”
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A strong case for rejection by the board was the loss in value that shareholders would get from APHA shares delisting from the New York Stock Exchange (NYSE). The board feels this change in Aphria would negatively impact interest from investors, eliminate future value for shareholders, and wouldn’t provide any major financial benefits. The company also expressed that the agreement would result in Aphria shareholders with shares in a company that is “with limited operations or other experience in the cannabis industry”.
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Aphria Board of Directors Unanimously Reject “Undervalued” Takeover Bid by Green Growth Brands
