Braslyn Ltd. agreed to acquire all the minority-held shares of Callidus Capital Corp. that are not owned by funds managed by parent company Catalyst Capital Group and board directors Newton Glassman and James Riley.
The Catalyst Capital funds own around 72.2% of Callidus Capital's shares, according to a news release.
Braslyn will acquire the shares for 75 Canadian cents apiece, which represents an 82.9% premium to Callidus Capital's Aug. 15 closing price and a 62.3% premium to its 20-day volume weighted average trading price.
Braslyn entered into various voting agreements to gain support for the deal. Callidus Capital is allowed to negotiate with other parties for another acquisition proposal up until 5 p.m. ET on Aug. 29.
The deal is expected to close in the fourth quarter.
Braslyn, a unit of early stage venture capital firm Tavistock Life Sciences, in December 2018 proposed raising its stake in Callidus Capital by acquiring all shares not owned by Callidus and itself for C$2.00 apiece. Callidus Capital's board said it will respect the choice of its minority shareholders.
Tavistock Life Sciences owns a 14.52% stake in Callidus Capital, according to S&P Global Market Intelligence data, making it the second-largest shareholder.
Blair Franklin Capital Partners Inc. provided financial valuation advice to Callidus Capital's special committee, while MPA Morrison Park Advisors Inc. provided a fairness opinion.