Lowe’s acquisition of RONA through a Nova Scotia ULC is not conditional on approval of prefs

It is proposed that RONA will be acquired for cash consideration under a Quebec Plan of Arrangement. The proposed purchaser is the existing Nova Scotia ULC operating subsidiary of Lowe’s, a North Carolina public corporation.

RONA has 7 million of outstanding TSX-listed preferred shares in addition to 107 million TSX-listed common shares. The transaction is not conditional on approval of the preferred shareholders, so that if the preferred shareholders do not approve the Arrangement, the transaction to purchase the common shares for $24 per share will proceed without them (so that the preferred shares do not have any extortive advantage).

Neal Armstrong. Summary of Circular of RONA Inc. under Mergers & Acquisitions – Cross-Border Acquisitions – Inbound - Canadian Buyco.