Aurora Cannabis To Review Takeover Bid From Rival Curaleaf
Aurora wasn’t immediately available for comment
Curaleaf Holdings plans to launch a $272 million unsolicited takeover bid to acquire rival Canadian cannabis company Aurora Cannabis after its board repeatedly refused to negotiate an acquisition deal.
Curaleaf is offering $4 a share for Aurora, representing a premium of more than 45% based on Aurora’s 30-day volume weighted average price.
“We will now take our proposal directly to Aurora shareholders because the premium is significant, the strategic rationale is compelling, and further delay is unjustified,” Curaleaf Chief Executive Boris Jordan said Tuesday, adding that he was disappointed in Aurora’s board’s refusal to meet.
The announcement sent Aurora’s stock soaring 22% to 4.85 Canadian dollars ($3.48).
The Stamford, Conn.-based maker of consumer cannabis products said it has made repeated attempts to engage Aurora’s leadership, beginning with a formal letter to the company’s CEO Miguel Martin, on June 23.
After Aurora declined to negotiate and rejected a follow-up outreach in early July Curaleaf decided to take the offer directly to shareholders.
Aurora wasn’t immediately available for comment.
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