Aphria’s takeover bid
On December 27, Green Growth Brands, the business name of Xanthic Biopharma, announced its bid to take over Aphria (APHA)(APHQF) for 11 Canadian dollars per share. This price represents a premium of roughly 45% over its closing price of 7.6 Canadian dollars per share on December 27.
$2.1 billion isn’t worthless
This announcement comes on the heels of a highly critical report from Quintessential Capital Management earlier this month, which called Aphria “worthless.” In a deal valued at 2.8 billion Canadian dollars ($2.1 billion), Aphria does not look worthless anymore. We also saw that Citron Research was positive about the company with a 10 Canadian dollar per share price target when everyone was selling off on Quintessential’s remarks about Aphria.
Following the announcement of Green Growth’s takeover bid for Aphria, the stock surged almost 18.5% in the after-hours session to close at $6.6 on the New York Stock Exchange.
This takeover offer is being called a hostile takeover bid. Keep reading to know why it is called a hostile takeover and what it would mean for Aphria if the takeover follows through.