Acquisition of DFC Global Corp. by Lone Star Funds May Not Be in Shareholders' Best Interests
SAN DIEGO & BERWYN, Pa., April 2, 2014 /PRNewswire/ -- Shareholder rights attorneys at Robbins Arroyo LLP is investigating the proposed acquisition of DFC Global Corp. (NASDAQ: DLLR) by the private equity company Lone Star Funds. On April 2, 2014, DFC Global announced the signing of a definitive merger agreement pursuant to which DFC Global shareholders will receive $9.50 in cash for each for each share of DFC Global common stock.
Is the Proposed Acquisition Best for DFC Global and Its Shareholders?
Robbins Arroyo LLP's investigation focuses on whether the board of directors at DFC Global is undertaking a fair process to obtain maximum value and adequately compensate DFC Global shareholders.
As an initial matter, the $9.50 merger consideration represents a premium of 5.8% based on DFC Global's closing price of $8.98 on April 1, 2014. This premium is significantly below the average one day premium of nearly 24% for comparable transactions in the last three years. Further, at least three analysts set a target price higher than the merger consideration including a target price of $15.00 set by an analyst at BTIG LLC on September 9, 2013 and a target price of $14.00 set by an analyst at Stephens Inc. on January 31, 2014. In addition, DFC has recently traded above $9.50 merger consideration, trading as high as $10.96 on January 30, 2014 and closing at $10.57 on the same day.
Given these facts, Robbins Arroyo LLP is examining the DFC Global board of directors' decision to sell the company to Lone Star Funds. DFC Global shareholders have the option to file a class action lawsuit to ensure the board of directors obtains the best possible price for shareholders and the disclosure of material information. DFC Global shareholders interested in information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, firstname.lastname@example.org, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The law firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP