| TORONTO, June 24
TORONTO, June 24 Two large groups of investors
that control roughly 20 percent of the shares of Tuckamore
Capital Management Inc have gone public with their
discontent over a management-led buyout of the firm, being
sponsored by Birch Hill, a private equity player.
Canso Investment Counsel Ltd and Access Holdings Management
Co, in separate statements, said they plan to vote shares they
control against the controversial transaction as it materially
undervalues Tuckamore, a holding firm that invests in early- and
mid-stage private companies across all sectors.
A spokesman for Tuckamore was not immediately available for
Tuckamore announced in early May that its senior management,
along with the support of Birch Hill Equity Partners, had agreed
to acquire the firm for 75 Canadian cents a share, valuing it at
around C$60 million ($55 million).
Access Holdings, which owns and manages more than 5 percent
of Tuckamore's shares, issued a release on Tuesday urging other
shareholders to vote against the offer, saying it is the "result
of a seriously flawed process" that it deems abusive to
The Toronto-based firm said if the management-led buyout is
thwarted it plans to propose a new slate of directors that will
put forward a clear plan to create value at Tuckamore and keep
the company public.
Access said it believes Tuckamore can be worth more than C$2
per share with the right strategy and proper management. It said
its valuation is based solely on historical results and does not
reflect the positive financial trajectory of Tuckamore's largest
assets, ClearStream, an oilfield services company, and Quantum
Murray, a decommissioning and environmental remediation firm.
Access named a slate of six nominees for election to the
board of Tuckamore, if the buyout plan is defeated. It also said
it plans to bring back former owners and key managers who used
to run some of the operating businesses Tuckamore owns, in a bid
to revitalize the company.
Access laid out its plan just a day after Canso, which owns
or controls close to 15 percent of Tuckamore's shares, said late
Monday it plans to vote against the management-led buyout at a
shareholder meeting that is being held on July 15.
($1 = 1.0853 Canadian dollars)
(Reporting by Euan Rocha; Editing by Nick Zieminski)