TORONTO, June 25 A backlash against a
management-led buyout of Tuckamore Capital Management Inc
grew on Wednesday, with another large investor JC Clark
Ltd stating that it plans to vote the shares it controls against
the proposed deal.
Two large sets of investors that control some 20 percent of
the shares of Tuckamore Capital went public on Tuesday with
their discontent over the management-led buyout of the firm that
is being sponsored by private equity firm Birch Hill.
JC Clark, which controls more than 8 percent of Tuckamore's
shares, said the 75 Canadian cent per share price being offered,
substantially undervalues Tuckamore and is inadequate.
Tuckamore announced in early May that its senior management,
along with the support of Birch Hill Equity Partners, had agreed
to acquire the firm in a deal that valued the holding firm that
invests in early- and mid-stage private companies at around C$60
million ($55 million).
Earlier this week, two large investors, Access Holdings and
Canso Investment Counsel, said they plan to vote against the
Access said on Wednesday it has filed a complaint about the
deal before the Ontario Securities Commission, alleging that it
runs afoul of capital market rules and that the terms of the
deal were abusive to non-management shareholders of Tuckamore.
A spokesman for Tuckamore declined to comment.
($1 = 1.0853 Canadian Dollars)
(Reporting by Euan Rocha; Editing by Grant McCool)