Concerned Shareholders of Sirius XM Canada

August 23, 2016 07:30 ET

Shareholder Group Announces That Leading Advisory Firm Institutional Shareholder Services Inc. Recommends Voting Against Proposed Sirius XM Canada Holdings Inc. Privatization

TORONTO, ONTARIO--(Marketwired - Aug. 23, 2016) - Shareholders holding approximately 8.4 million Class A shares of Sirius XM Canada Holdings Inc. ("Sirius XM Canada"), representing 21% of those held by minority shareholders excluding the CBC (the "Shareholder Group"), are pleased to announce that Institutional Shareholders Services Inc. ("ISS), a leading firm providing comprehensive and independent research and advice to the world's largest and most sophisticated investors regarding economic proposals, corporate governance and shareholder rights, recommends voting AGAINST the proposed transaction to privatize Sirius XM Canada ("Proposed Transaction").

The ISS report, dated August 15, 2016, criticizes the weak process followed by Sirius XM Canada's board of directors, as well as the valuation performed by the financial advisors which used overly negative assumptions and exaggeratedly high discount rates. The ISS report concludes that "A vote AGAINST this transaction is therefore warranted, as the consideration appears to undervalue the company given its strong historic revenue growth as well as management's own projection of likely continued revenue growth."

"We are very pleased that the ISS report reaffirms our view that the process failed to maximize value for shareholders and that the valuation and fairness opinions in the management information circular are flawed" said Gabriel Bouchard-Phillips, Partner at Van Berkom and Associates.

On July 14, 2016, the Shareholder Group filed a complaint with the Ontario Securities Commission concerning the use of coercive tactics by Sirius XM Holdings Inc. and requested that the CBC be excluded from the majority of minority shareholders vote on August 30 due to its continuing business relationship with Sirius XM Canada. The Shareholder Group reiterates their position that the proposed terms of the privatization are inadequate and not in the best interest of independent minority shareholders.



The Shareholder Group objecting to the Proposed Transaction and who filed a complaint with the OSC relating to Sirius XM Canada and Sirius XM Holdings, comprise portfolio management firms that have long-established track records of patient and successful value investing, and are committed to promoting good corporate governance and protecting their rights as shareholders and those of their clients, and include:

Van Berkom and Associates Inc. Rondeau Capital Inc.
Agilith Capital Inc. Lester Asset Management Inc.
Avenue Investment Management JC Clark Ltd.

Contact Information

  • Andrea Horan
    Portfolio Manager
    Agilith Capital Inc.

    Gabriel Bouchard Phillips
    Van Berkom and Associates

    Keith Graham
    Rondeau Capital Inc.

    Stephen Takacsy
    Chief Investment Officer
    Lester Asset Management