Curaleaf launches US$272M unsolicited takeover bid for Aurora Cannabis

Curaleaf Holdings has announced plans to launch an unsolicited US$272 million takeover bid for Aurora Cannabis. The Connecticut-based operator is proposing to purchase all issued and outstanding shares of the Edmonton-based producer at an implied value of US$4.00 per share. The offer consists of 0.3463 Curaleaf subordinate voting shares and US$0.75 in cash for each Aurora share held.

This proposal represents a 45 percent premium over Aurora’s 30-day volume-weighted average price of US$2.75. Curaleaf noted that when excluding cash and cash equivalents on Aurora’s balance sheet, the implied premium rises to 110 percent. Curaleaf Chairman and CEO Boris Jordan stated the move follows unsuccessful private attempts to negotiate with Aurora leadership.

Aurora Cannabis has contested Curaleaf’s narrative regarding their private discussions. The company confirmed it is forming a special committee of independent directors to evaluate the proposal. Aurora noted that previous correspondence from Curaleaf lacked specific details on the cash-and-share mix and maintained that its board remains focused on executing its existing business plan.