Three weeks before the shareholders’ meeting that will decide on the proposed US sale of LKQ for $2.8 billion, the management of Uni-Select is promoting a favorable recommendation from the firm Institutional Shareholder Services (ISS), specialized in shareholder vote analysis and advice.
Brian McManus, executive chairman and chief executive of the Quebec auto parts distributor, believes that this recommendation by ISS in favor of the proposed sale at $48 per share in cash, announced on February 27, “encourages the company’s shareholders to vote in favor” of the “Plan of Arrangement with LKQ” by submitting their proxy vote by the April 25 deadline.
Two days later, on April 27, Uni-Select’s extraordinary shareholders’ meeting will take place with the final compilation of all voting rights exercised by shareholders, by proxy and during the meeting. which will be held in virtual mode.
To follow its course, the proposed sale of Uni-Select must obtain the support of at least two-thirds (66%) of the votes cast by the shareholders of the company established in Boucherville.
So far, the leaders of Uni-Select and their counterparts at LKQ indicate that they have obtained the support of major shareholders who account for at least 20% of the eligible votes.
But other major shareholders at Uni-Select, including the Caisse de depot et placement du Québec with 9.5% of the shares, have not yet indicated their intention to vote on this transaction.
Favorable analyst
Meanwhile, in a new note to investors, analyst Zachary Evershed of National Bank Financial recommends that shareholders tender their shares to the tender offer negotiated with LKQ.
“Considering that the price of this offer probably excludes a competing offer from a buyer of financial origin, and that it reduces the possibility of an offer from strategic buyers [dans le même secteur d’activités] which could target the level of synergies already targeted by LKQ, I consider that the tender offer is adequate and timely to quickly realize the increase in value to Uni-Select shareholders which was already possible depending on the progress of its development plan. ‘business,’ writes the analyst.
Moreover, The Press revealed, a few days ago, that the realization of the proposed sale of this Quebec company would bring in nearly 82 million in share buybacks and various bonuses among its most senior executives and the members of its board of directors.