Forum Topics DTC DTC Potential Takeover

Pinned straw:

Added one year ago

A long time coming this - the company apparently was approached by several parties with initial, conditional, non-binding and indicative offers.

It decided to grant exclusive DD to one of them - US-based Mitratech holdings. The offer is for 30c, and preferred settlement is via scheme of arrangement.

Shares are up big as expected, though there is a still a considerable gap to the offer price. For long-suffering holders, this may not be the worst exit - hopefully we get a bidding war with a much better final price, as we saw with IntelliHR (I sold on the first bid and left over 100% on the table with that one!).

Generally, it looks like Christian is finally willing to vend the company.

thunderhead
Added one year ago

That's right - good only for those who were bold enough (not yours truly!) to bottom fish in anticipation of opportunistic takeovers. Shows that there is value in the space too for the vultures to swoop in.

Of course, dud management can bungle this too (see TYR, ERD, even RHC etc. as recent examples).

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UlladullaDave
Added one year ago

Another fine example of the old adage that more companies die of indigestion than starvation.

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AUROPAL
Added one year ago

It still means that most long term holders will end up losing their shirt and locking in a big loss. Not as bad as the current paper loss but still hardly a good outcome for shareholders.

Just anotheer PE outfit taking advantage of depressed small cap valuations.

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