A group of Arco Platform Ltd. shareholders sent a letter to directors urging them to reject a deal to take the company private, according to a copy of the communication reviewed by Bloomberg News.
(Bloomberg) — A group of Arco Platform Ltd. shareholders sent a letter to directors urging them to reject a deal to take the company private, according to a copy of the communication reviewed by Bloomberg News.
Arisaig Partners, Gavea Investimentos and Hix Capital, which say they represent a collective ownership stake of 13%, wrote that if Arco agrees to a proposed takeover by Dragoneer Investment Group and General Atlantic LLC, it would “represent a callous mistreatment of minority shareholders,” according to the letter. The group described the $11-a-share offer price as “unfavorable,” adding that the value is not “anywhere close to acceptable” based on Arco’s history as a public company, earnings momentum, recent volume-weighted market price and peers.
Read more: Go-Private Bid from General Atlantic, Dragoneer Propels Arco
Representatives for Hix and Gavea declined to comment. Arisaig and Arco didn’t immediately respond to a request for comment.
Shares in Sao Paulo-based Arco, a developer of educational software, closed Wednesday at $13.08, a premium over the tabled take-private offer. It has a market capitalization of roughly $744 million.
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