Western Canada’s biggest fruit-based food processor has picked up an independent proxy firm’s support for a proposal to take the publicly-traded firm private.
Minority shareholders in Sun-Rype Products are to vote at a special meeting Sept. 24 on the proposal from Great Pacific Industries, part of Vancouver’s Jim Pattison Group, to buy up the 46 per cent of Sun-Rype stock that it doesn’t already own.
Institutional Shareholder Services, an independent proxy firm has now recommended Sun-Rype’s non-Pattison shareholders vote in favour of the deal, Sun-Rype announced Thursday.
ISS said its recommendation was “based on a review of the terms of the transaction and, in particular, the significant premium, the favorable market reaction and no significantly noted governance concerns.”
Great Pacific’s proposal, announced in non-binding form in late June, became a formal “arrangement agreement” with Sun-Rype in late July, in which it’s proposed that Sun-Rype’s minority shareholders would get $7.50 per share.
The board of directors for Kelowna, B.C.-based Sun-Rype also now unanimously supports the Pattison proposal.
Pending shareholder approval, court approval and other conditions, the deal is now expected to close by the end of this month. — AGCanada.com Network