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Luxor Capital still opposed to Ritchie Bros. deal to buy IAA despite changes

Jan 25, 2023 | 5:44 AM

VANCOUVER — Investment firm Luxor Capital Group LP remains opposed to Ritchie Bros. Auctioneers Inc.’s deal to buy IAA Inc. despite changes to the agreement.

Luxor, which holds a 3.6 per cent stake in the auctioneer, says the revised deal does little for Ritchie Bros. shareholders. It is also critical of a US$500-million financing deal with Starboard Value LP that was announced alongside the changes.

Ritchie Bros. amended its proposal to buy IAA earlier this week to increase the proportion of cash offered and trim the overall value of the bid.

The Vancouver-based company is now offering US$12.80 per share in cash and 0.5252 of a Ritchie Bros. share for each IAA share. In its original proposal, the company had offered US$10 in cash and 0.5804 of a Ritchie Bros. share for each IAA share.