Will Dye & Durham (TSX:DND) Stock Price Rise With Privatization Plans?

Follow us on Google News:
 Will Dye & Durham (TSX:DND) Stock Price Rise With Privatization Plans?
Image source: Joyseulay, Shutterstock

Stocks of Dye & Durham (TSX:DND) jumped as much as 18 per cent on Monday (9:35AM EST), May 31, as the company announced that its management is exploring options to go private.


The software player stated through an exchange filing that a group of its major stockholders, guided by the management, has shown interest in purchasing the firm. They are offering C$ 50.50 apiece against its previous closing price of C$ 40.99 apiece to its existing shareholders. Thus, shareholders will get nearly 23 per cent in premium from Friday’s closing price. 

The company continues to boost its merger and acquisition (M&A) operations, representing 300 per cent growth since its initial public offering (IPO) in July 2020.

The Toronto Stock Exchange-listed firm’s M&A process could be a bit complicated due to long securities regulations and scrutiny. This could be one of the reasons to take the firm private. Apart from that, the company expects to focus on its organic growth, but it has not mentioned its strategy in the press statement.

However, Dye & Durham’s management said that a fresh committee consisting of independent directors will also evaluate other strategic options.  Hence, this is an interim proposal, that is subject to further assessments. 

Let us take a glance at the software solution provider’s stock performance.

Dye & Durham Limited (TSX:DND)

The tech firm provides cloud-based software solutions to bolster effectiveness and accelerate operations for legal and business organizations. It operates throughout Canada, Ireland, the UK and Australia. Its market cap is C$ 3.28 billion. 

The mid-cap stock is up 447 per cent since its listing. However, it has shrunk by nearly 19 per cent this year, offset by Monday’s performance. It has soared more than 66 per cent in the last nine months.

Bay Street analysts have pegged the stock’s target price at C$ 57.50 apiece for one-year of trading, compared to its tentatively proposed price of C$ 50.50 apiece.

Dye & Durham's Listing-to-date Price Performance Against Moving Average Multiple and Volume. (Source: Refinitiv)

As of Friday, May 28, the stock was testing its moving average multiple and marginally dropped by one per cent.

Its trading volume spiked to 259,000 shares on Monday morning, against the 30-day average movement of 172,536 shares.

The above constitutes a preliminary view and any interest in stocks should be evaluated further from investment point of view.

Disclaimer

The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media Incorporated (Kalkine Media), Business Number: 720744275BC0001 and is available for personal and non-commercial use only. The advice given by Kalkine Media through its Content is general information only and it does not take into account the user’s personal investment objectives, financial situation and specific needs. Users should make their own enquiries about any investment and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media is not registered as an investment adviser in Canada under either the provincial or territorial Securities Acts. Some of the Content on this website may be sponsored/non-sponsored, as applicable, however, on the date of publication of any such Content, none of the employees and/or associates of Kalkine Media hold positions in any of the stocks covered by Kalkine Media through its Content. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used in the Content are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures displayed/music used in the Content unless stated otherwise. The images/music that may be used in the Content are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source wherever it was indicated or was found to be necessary.

Featured Articles

We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK