TIO Networks (TSXV: TNC) reported that Institutional Shareholder Services Inc. and Glass Lewis & Co., have both recommended that TIO shareholders approve the proposed plan of arrangement with PayPal, and Tahoe Acquisition ULC, a wholly-owned subsidiary of PayPal. Under the agreement, PayPal will indirectly acquire all of the issued and outstanding shares of TIO for $3.35 CAD in cash per TIO share.
As quoted in the press release:
ISS and Glass Lewis have both indicated the Arrangement is in the best interests of TIO shareholders and recommended that shareholders of TIO vote FOR the proposed Arrangement. Specifically, in its March 24, 2017 report, ISS concluded “in light of the cash premium which provides certainty of value, immediate liquidity, and the favourable market reaction, shareholder approval of this resolution is warranted”. In its March 27, 2017 recommendation, Glass Lewis recommended that shareholders vote FOR the Arrangement for a number of reasons, including the financial aspects of the transaction and the fact that the Board of Directors of TIO supported the Arrangement.