One of Magnet Forensics Inc.'s shareholders says it has filed a notice of dissent after investors voted in favour of Thoma Bravo's $1.8-billion takeover of the cybersecurity company.
Nellore Capital Management LLC founder and portfolio manager Sakya Duvvuru says if he and Magnet cannot reach a deal on the company's valuation, the matter will be decided through court proceedings.
Magnet says 99.01 per cent of shareholder votes cast yesterday supported U.S. private equity firm Thoma Bravo's takeover of the Waterloo, Ont.-based company.
Holders of multiple voting shares gave the deal 100 per cent approval, while those with subordinate voting shares were 68.17 per cent in favour.
When subordinate voting shareholders required under securities laws to be excluded from the count were omitted, the deal garnered 66.85 per cent support.
The takeover needed two-thirds of support from all investors and a majority of votes in favour from subordinate voting shareholders before it can seek approval from the Ontario Superior Court of Justice.
Nellore, which holds 11 per cent of Magnet's subordinate shares, has argued shares are worth more than the $44.25 in cash most holders will receive. Rolling shareholders will receive $39 per share.
This report by The Canadian Press was first published March 24, 2023.
Companies in this story: (TSX:MAGT)
The Canadian Press