MMAM Rejects Pollard Banknote’s INNOVA Acquisition Offer
Pollard Banknote Ltd. Has formalized its offer to purchase INNOVA Gaming Group Inc. last week as the Winnipeg-based lottery ticket printer officially offered $2.10 per share for the Amaya-owned company.
Pollard Banknote Deal on Thin Ice
INNOVA Board formed a special committee, however, recommending that shareholders should consider alternative solutions and defer from making any decisions in respect to Pollard Banknote’s offer until other formal offers have been reviews and evaluated.
The company’s shares have most recently been traded at around $2.20 and Pollard Banknote’s offer has been deemed undervalued.
The largest INNOVA shareholder – Amaya – has initially given the nod for the Pollard Banknote’s deal to go through via a support agreement, but the Canada-based company’s decision to enter such arrangement can be revoked should INNOVA’s advisors generate a new acquisition that would exceed the proposed price by Pollard Banknote.
MMAM To Reject the Proposal
In the meantime, the MM Asset Management (MMAM) has revealed that it intends to reject the acquisition offer from Pollard Banknote, as it believes that an offer of $2.10 per share significantly undervalues INNOVA common shares’ worth.
The MMAM argue that the analysts have set the target price range somewhere between $3 and $4.50 per share and the company which exercises control or direction over approximately 11.3$ of the standout common INNOVA shares is unwilling to accept anything less.
As a note, INNOVA’s initial public offering less than two years ago was completed at $4 per share, therefore MMAM has encouraged INNOVA’s special committee to execute a full strategic review which is expected to pave path for a sale transaction at a significantly higher price than Pollard Banknote’s.
Pollard Banknote’s offer officially expires on 3 August 2017.
MMAM-advised investment fund acquired 2.304,500 INNOVA shares earlier this year on behalf of MMCAP International Inc. through the facilities of the Toronto Stock Exchange.