U.S. cannabis company plans takeover bid of Aphria
Green Growth Brands, a U.S cannabis retailer, announced Thursday that it intends to make an offer to purchase Leamington-based company, Aphria Inc.
The hostile bid is valued at $2.8-billion.
The Columbus, Ohio based-company says the offer will provide Aphria shareholders with 1.5714 common shares of Green Growth, for each Aphria share.
The company plans to offer $11 per share in an all-stock bid for Aphria, according to a statement Thursday, which is a 46 per cent premium over Aphria’s closing price on Monday.
“We believe our offer will create value for both Aphria and Green Growth shareholders. We are confident that the significant premium we are offering and the opportunity to participate in the growth of a stronger, combined company are so compelling that we are taking our offer directly to Aphria’s shareholders. Together, we can unleash synergies between our teams, assets and geographies, forming a combined enterprise that will accelerate our collective growth strategies in Canada, the U. S. and overseas,” said Peter Horvath, CEO of Green Growth.
Aphria shares closed Thursday at $7.57 on the Toronto Stock Exchange, but shot up in after-hours trading amid reports of the takeover bid.
Green Growth Brans says combining the two companies would be the fastest way to create significant value for shareholders, and would create an unparalleled North American player with Canadian and U.S. operations.