DMC Global Board Responds to Steel Connect
DMC Global (NASDAQ: BOOM) has responded to Steel Connect's unsolicited acquisition offers. The Board of Directors has repeatedly invited Steel Connect to participate in its strategic alternatives review, subject to standard terms. However, Steel Connect has rejected requests to enter a customary non-disclosure agreement and a 30-day standstill agreement. Steel Connect's demand for details of all offers from other participants is deemed unacceptable. The Board remains open to engaging with Steel Connect under conditions that protect all stockholders' rights. DMC emphasizes that there is no assurance of any transaction or alternative resulting from this process, nor any timeline for completion. The company has retained BofA Securities as financial advisor, along with legal, stockholder, and communications advisors to assist in the process.
DMC Global (NASDAQ: BOOM) ha risposto alle offerte di acquisizione non richieste da parte di Steel Connect. Il Consiglio di Amministrazione ha ripetutamente invitato Steel Connect a partecipare alla revisione delle opzioni strategiche, a condizione di termini standard. Tuttavia, Steel Connect ha rifiutato le richieste di entrare in un accordo di riservatezza consuetudinario e in un accordo di standstill di 30 giorni. La richiesta di Steel Connect di ricevere dettagli su tutte le offerte da altri partecipanti è considerata inaccettabile. Il Consiglio rimane aperto a coinvolgere Steel Connect a condizioni che proteggano i diritti di tutti gli azionisti. DMC sottolinea che non vi è alcuna garanzia di una qualsiasi transazione o alternativa derivante da questo processo, né di una tempistica per il completamento. L'azienda ha incaricato BofA Securities come consulente finanziario, insieme a consulenti legali, per gli azionisti e per la comunicazione, per assistere nel processo.
DMC Global (NASDAQ: BOOM) ha respondido a las ofertas de adquisición no solicitadas de Steel Connect. La Junta Directiva ha invitado repetidamente a Steel Connect a participar en la revisión de sus alternativas estratégicas, sujeto a términos estándar. Sin embargo, Steel Connect ha rechazado las solicitudes para entrar en un acuerdo de confidencialidad habitual y un acuerdo de standstill de 30 días. La demanda de Steel Connect de detalles sobre todas las ofertas de otros participantes es considerada inaceptable. La Junta se mantiene abierta a entablar conversaciones con Steel Connect en condiciones que protejan los derechos de todos los accionistas. DMC enfatiza que no hay ninguna garantía de que se produzca alguna transacción o alternativa como resultado de este proceso, ni tampoco un calendario para su finalización. La empresa ha contratado a BofA Securities como asesor financiero, junto con asesores legales, de accionistas y de comunicación para ayudar en el proceso.
DMC 글로벌 (NASDAQ: BOOM)은 스틸 커넥트의 수신 거부 인수 제안에 대응했습니다. 이사회는 스틸 커넥트에게 반복적으로 초대장을 보냈습니다 전략적 대안 검토에 참여하여 일반적인 조건에 따라 진행됩니다. 하지만 스틸 커넥트는 비밀 유지 계약 체결 및 30일 정지 계약을 체결하라는 요청을 거부했습니다. 스틸 커넥트의 다른 참가자들로부터의 모든 제안 세부정보 요청은 수용할 수 없는 것으로 간주됩니다. 이사회는 모든 주주의 권리를 보호하는 조건 하에 스틸 커넥트와의 협력에 열려 있습니다. DMC는 이 과정에서 어떠한 거래나 대안이 이루어질 것이라는 보장이 없다고 강조하며, 완료를 위한 일정도 없습니다. 회사는 BofA 증권을 재무 자문으로 고용하고 있으며, 법률, 주주 및 커뮤니케이션 자문도 함께 이 과정에서 지원하고 있습니다.
DMC Global (NASDAQ: BOOM) a répondu aux offres d'acquisition non sollicitées de Steel Connect. Le Conseil d'Administration a répété d'inviter Steel Connect à participer à sa révision des alternatives stratégiques, sous réserve de conditions standards. Cependant, Steel Connect a rejeté les demandes d'entrer dans un accord de confidentialité classique et un accord de gel de 30 jours. L'exigence de Steel Connect de recevoir des détails sur toutes les offres d'autres participants est considérée comme inacceptable. Le Conseil reste ouvert à un engagement avec Steel Connect dans des conditions qui protègent les droits de tous les actionnaires. DMC souligne qu'il n'y a aucune garantie de transaction ou d'alternative résultant de ce processus, ni de calendrier pour son achèvement. L'entreprise a retenu BofA Securities comme conseiller financier, ainsi que des conseillers juridiques, en matière d'actionnaires et de communication pour l'assister dans ce processus.
DMC Global (NASDAQ: BOOM) hat auf die unaufgeforderten Übernahmeangebote von Steel Connect reagiert. Der Vorstand hat Steel Connect mehrfach eingeladen, an der Überprüfung seiner strategischen Alternativen teilzunehmen, unter der Voraussetzung üblicher Bedingungen. Steel Connect hat jedoch die Anfragen abgelehnt, einen üblichen Geheimhaltungsvertrag und eine 30-tägige Stopp-Vereinbarung einzugehen. Die Forderung von Steel Connect nach Details zu allen Angeboten von anderen Teilnehmern wird als inakzeptabel angesehen. Der Vorstand bleibt offen, um mit Steel Connect unter Bedingungen zu verhandeln, die die Rechte aller Aktionäre schützen. DMC betont, dass es keine Garantie für eine Transaktion oder Alternative gibt, die aus diesem Prozess resultiert, noch einen Zeitrahmen für den Abschluss. Das Unternehmen hat BofA Securities als Finanzberater beauftragt, zusammen mit rechtlichen, aktionärischen und kommunikativen Beratern, um den Prozess zu unterstützen.
- Board's proactive approach in reviewing strategic alternatives
- Willingness to engage with potential acquirers under appropriate conditions
- Engagement of reputable advisors (BofA Securities, Womble Bond Dickinson, etc.) for the strategic review process
- Unsolicited acquisition offers may create uncertainty for shareholders
- Potential disruption to normal business operations during the strategic review process
- No assurance of a favorable outcome or timeline for the strategic alternatives review
Insights
The DMC Global board's response to Steel Connect's unsolicited acquisition offers highlights several key legal considerations. The board's insistence on a non-disclosure agreement and 30-day standstill agreement is standard practice to protect confidential information and maintain process integrity. Steel Connect's demand for details of other offers raises potential conflict of interest concerns. The board's approach demonstrates adherence to fiduciary duties, prioritizing all stockholders' interests. However, the lack of engagement may potentially expose the board to shareholder litigation risks if perceived as not fully exploring value-maximizing opportunities. The retention of legal advisors underscores the complex legal landscape surrounding this potential transaction.
DMC Global's response to Steel Connect's acquisition offers reveals a cautious approach to potential M&A activity. The board's strategic alternatives review suggests they're open to various options, not just an outright sale. This could include divestitures, mergers, or remaining independent. The involvement of BofA Securities as financial advisor indicates a thorough valuation process. Steel Connect's interest in DynaEnergetics and NobelClad businesses might signal these units' perceived value. However, the lack of financial details or offer prices makes it challenging to assess the deal's potential impact on shareholder value. The market's reaction to this news will be crucial, as it may influence the board's decision-making process and potentially attract other bidders.
The DMC Global board's actions demonstrate strong corporate governance practices. By engaging financial and legal advisors, they're ensuring a thorough and professional review process. The board's willingness to engage with Steel Connect, albeit under specific conditions, shows openness to potential value-creating opportunities. However, their firm stance on protecting the integrity of the process and all stockholders' interests is commendable. The use of a strategic stockholder advisor (Sodali & Co.) indicates a focus on shareholder communication and engagement. The board's decision not to disclose a specific timetable or comment further unless necessary reflects a balanced approach to transparency and confidentiality. Overall, these actions align with best practices in corporate governance during potential M&A situations.
BROOMFIELD, Colo., Sept. 19, 2024 (GLOBE NEWSWIRE) -- DMC Global (NASDAQ: BOOM) (“DMC” or the “Company”) today announced its Board of Directors (the “Board”) responded to a press release from Steel Connect, Inc. (“Steel Connect”) in connection with its May 31, 2024, unsolicited offer to acquire DMC, and a related offer on September 17 to acquire the Company, or alternatively, its DynaEnergetics and NobelClad businesses.
Since the initial offer, the Board directly, and through its financial and legal advisors, has repeatedly offered Steel Connect an opportunity to participate in the Board’s review of strategic alternatives subject to standard terms and conditions. Steel Connect has rejected DMC’s requests to enter into a customary non-disclosure agreement and a limited, 30-day standstill agreement, which are intended to protect the Company’s confidential information and the integrity of the strategic alternatives process.
In addition, Steel Connect has demanded the details of all offers and indications of interest provided by the other participants in the process. This demand is unacceptable as it interferes with the Board’s role in managing the strategic review process. The Board would look forward to exchanging information and engaging with Steel Connect, subject to entering into an agreement with customary provisions that protect the rights of all stockholders.
There can be no assurance this process will result in any transaction or other alternative, nor any assurance as to its outcome or timing. There is no timetable for completion of this process and DMC does not intend to comment further unless and until it determines additional disclosure is necessary or appropriate.
BofA Securities is acting as financial advisor to DMC. Womble Bond Dickinson (US) LLP and Richards, Layton & Finger, P.A. are acting as DMC’s legal advisors; Sodali & Co. is acting as its strategic stockholder advisor; and Gagnier Communications LLC is its strategic communications advisor.
About DMC Global
DMC Global is an owner and operator of innovative, asset-light manufacturing businesses that provide unique, highly engineered products and differentiated solutions. DMC’s businesses have established leadership positions in their respective markets and consist of: Arcadia, a leading supplier of architectural building products; DynaEnergetics, which serves the global energy industry; and NobelClad, which addresses the global industrial infrastructure and transportation sectors. Based in Broomfield, Colorado, DMC trades on Nasdaq under the symbol “BOOM.” For more information, visit: http://www.dmcglobal.com.
Safe Harbor Language
This news release contains certain forward-looking statements regarding the Company. All of these statements are based on management’s expectations as well as estimates and assumptions prepared by management that, although they believe to be reasonable, are inherently uncertain. These statements involve risks and uncertainties, including, but not limited to, economic, competitive, governmental and other factors outside of the Company’s control that may cause its business, industry, strategy, financing activities or actual results to differ materially. More information on potential factors that could affect the Company and its financial results is available in the “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections within the Company’s Annual Report on Form 10-K for the year ended December 31, 2023, and in other documents that the Company has filed with, or furnished to, the U.S. Securities and Exchange Commission. The Company does not undertake any obligation to release public revisions to any forward-looking statement, including, without limitation, to reflect events or circumstances after the date of this news release, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities laws.
CONTACT:
Investors:
Geoff High
Vice President of Investor Relations
303-604-3924
Media:
Riyaz Lalani or Dan Gagnier
Gagnier Communications
416-305-1459
DMCGLOBAL@GAGNIERFC.COM
FAQ
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