Governance Insights: M&A Process Matters – Lessons From A Contested Fairness Hearing

A contested fairness hearing in respect of the take-private of Altius Renewables Royalties Corp., a TSX-listed renewable energy royalty company (the target), serves as a helpful reminder to directors and M&A professionals of the value of following M&A governance best practices, particularly where the transaction involves material conflicts of interest. Although the transaction was ultimately completed, the legal challenges levelled against the target's governance process increased transactional costs and execution risk and exposed both the deal and the principals of the target to legal and reputational risks. Our key takeaways are set out at the end of this article.

Background