TTEC Receives Unsolicited Proposal from CEO to be Taken Private
TTEC Holdings, Inc. (NASDAQ:TTEC) has received an unsolicited proposal from its founder, Chairman, and CEO Kenneth Tuchman to take the company private. The offer proposes to purchase all outstanding shares not already owned by Tuchman and his affiliates at $6.85 per share, representing a 55% premium to the 30-day volume-weighted average price and a 69% premium to the most recent closing price.
Tuchman, who beneficially owns approximately 58% of TTEC's common stock, believes that returning to a private structure would benefit all stakeholders by providing liquidity to public shareholders and allowing the company to operate with greater flexibility. The proposal is subject to various conditions, including financing, negotiation of a definitive agreement, and approval by both a Special Committee of independent directors and a majority of non-affiliated shareholders.
TTEC's Board has established a Special Committee to evaluate the proposal. There is no assurance that a definitive offer will be made or that any transaction will be approved or completed.
TTEC Holdings, Inc. (NASDAQ:TTEC) ha ricevuto una proposta non richiesta dal suo fondatore, Presidente e CEO Kenneth Tuchman per rendere l'azienda privata. L'offerta prevede l'acquisto di tutte le azioni in circolazione non già possedute da Tuchman e dai suoi affiliati a $6.85 per azione, rappresentando un 55% di premio rispetto al prezzo medio ponderato per volume degli ultimi 30 giorni e un 69% di premio rispetto all'ultimo prezzo di chiusura.
Tuchman, che detiene beneficamente circa il 58% delle azioni ordinarie di TTEC, crede che tornare a una struttura privata avvantaggerebbe tutti gli stakeholder fornendo liquidità agli azionisti pubblici e consentendo all'azienda di operare con maggiore flessibilità. La proposta è soggetta a varie condizioni, tra cui il finanziamento, la negoziazione di un accordo definitivo e l'approvazione sia da parte di un Comitato Speciale di amministratori indipendenti che da parte della maggioranza degli azionisti non affiliati.
Il Consiglio di Amministrazione di TTEC ha istituito un Comitato Speciale per valutare la proposta. Non c'è garanzia che venga fatta un'offerta definitiva o che qualsiasi transazione venga approvata o completata.
TTEC Holdings, Inc. (NASDAQ:TTEC) ha recibido una propuesta no solicitada de su fundador, Presidente y CEO Kenneth Tuchman para privatizar la empresa. La oferta propone la compra de todas las acciones en circulación que no son ya propiedad de Tuchman y sus afiliados a $6.85 por acción, lo que representa un 55% de prima sobre el precio promedio ponderado por volumen de los últimos 30 días y un 69% de prima sobre el precio de cierre más reciente.
Tuchman, quien posee aproximadamente el 58% de las acciones ordinarias de TTEC, cree que regresar a una estructura privada beneficiaría a todos los interesados al proporcionar liquidez a los accionistas públicos y permitir que la empresa opere con mayor flexibilidad. La propuesta está sujeta a diversas condiciones, incluyendo financiamiento, negociación de un acuerdo definitivo y aprobación tanto por un Comité Especial de directores independientes como por la mayoría de los accionistas no afiliados.
La Junta de TTEC ha establecido un Comité Especial para evaluar la propuesta. No hay garantía de que se presente una oferta definitiva o que se apruebe o complete alguna transacción.
TTEC Holdings, Inc. (NASDAQ:TTEC)는 창립자이자 회장 겸 CEO인 Kenneth Tuchman이 회사를 사적으로 운영하기 위해 비공식 제안을 받았습니다. 이 제안은 Tuchman과 그의 계열사가 이미 소유하고 있지 않은 모든 유통 주식을 $6.85 per share에 매입할 것을 제안하며, 이는 최근 30일간 거래량 가중 평균 가격에 비해 55%의 프리미엄과 최근 종가에 비해 69%의 프리미엄을 나타냅니다.
Tuchman은 TTEC의 보통주 58%를 실질적으로 소유하고 있으며, 사적 구조로 돌아가는 것이 모든 이해관계자에게 유익할 것이라고 믿고 있습니다. 이는 공적 주주에게 유동성을 제공하고 회사가 더 큰 유연성을 가지고 운영할 수 있게 해줍니다. 이 제안은 자금 조달, 최종 계약의 협상 및 독립 이사로 구성된 특별 위원회 및 비유관 주주의 과반수의 승인 등 다양한 조건에 따라 달라집니다.
TTEC의 이사회는 이 제안을 평가하기 위해 특별 위원회를 구성했습니다. 최종 제안이 이루어질 것이라는 보장이나 거래가 승인되거나 완료될 것이라는 보장은 없습니다.
TTEC Holdings, Inc. (NASDAQ:TTEC) a reçu une proposition non sollicitée de son fondateur, Président et PDG Kenneth Tuchman, visant à privatiser l'entreprise. L'offre propose d'acheter toutes les actions en circulation qui ne sont pas déjà détenues par Tuchman et ses affiliés à $6.85 par action, représentant une 55% de prime par rapport au prix moyen pondéré par le volume des 30 derniers jours et une 69% de prime par rapport au prix de clôture le plus récent.
Tuchman, qui détient environ 58% des actions ordinaires de TTEC, croit que le retour à une structure privée serait bénéfique pour toutes les parties prenantes en fournissant de la liquidité aux actionnaires publics et en permettant à l'entreprise d'opérer avec plus de flexibilité. La proposition est soumise à diverses conditions, y compris le financement, la négociation d'un accord définitif et l'approbation par un Comité Spécial de directeurs indépendants ainsi que par la majorité des actionnaires non affiliés.
Le Conseil d'administration de TTEC a créé un Comité Spécial pour évaluer la proposition. Il n'y a aucune garantie qu'une offre définitive sera faite ou qu'une transaction sera approuvée ou conclue.
TTEC Holdings, Inc. (NASDAQ:TTEC) hat ein unangekündigtes Angebot von seinem Gründer, Vorsitzenden und CEO Kenneth Tuchman erhalten, das Unternehmen privat zu nehmen. Das Angebot sieht vor, alle ausstehenden Aktien, die nicht bereits im Besitz von Tuchman und seinen Mitgliedern sind, zu einem Preis von $6.85 pro Aktie zu kaufen, was einen 55% Aufschlag auf den 30-Tage volumengewichteten Durchschnittspreis und einen 69% Aufschlag auf den zuletzt geschlossenen Preis darstellt.
Tuchman, der etwa 58% der Stammaktien von TTEC besitzt, ist der Meinung, dass die Rückkehr zu einer privaten Struktur allen Stakeholdern zugutekommen würde, indem sie den öffentlichen Aktionären Liquidität bietet und es dem Unternehmen ermöglicht, flexibler zu agieren. Das Angebot unterliegt verschiedenen Bedingungen, einschließlich der Finanzierung, der Verhandlung einer endgültigen Vereinbarung und der Genehmigung durch ein spezielles Komitee unabhängiger Direktoren sowie die Mehrheit der nicht verbundenen Aktionäre.
Der Vorstand von TTEC hat ein spezielles Komitee eingerichtet, um das Angebot zu bewerten. Es gibt keine Garantie dafür, dass ein endgültiges Angebot unterbreitet oder dass eine Transaktion genehmigt oder abgeschlossen wird.
- Offer represents a significant premium of 55% to 30-day VWAP and 69% to recent closing price
- Potential for increased operational flexibility as a private company
- Liquidity opportunity for public shareholders at a premium
- Uncertainty regarding the completion of the transaction
- Potential loss of public market liquidity for remaining shareholders if the deal is completed
- Possible conflicts of interest due to CEO's dual role as acquirer and company leader
Insights
This unsolicited proposal from TTEC's CEO to take the company private is a significant development with potentially major implications for shareholders. The offer of
Key points to consider:
- The CEO already owns
58% of the company, giving him significant control. - The proposal is subject to financing and shareholder approval, including a majority of minority shareholders.
- Going private could allow TTEC to make long-term strategic decisions without public market pressures.
- However, minority shareholders would lose future upside potential if the company's performance improves.
The formation of a Special Committee of independent directors to evaluate the offer is a important step to protect minority shareholder interests. Investors should closely monitor developments, as the final outcome could significantly impact the stock's value in the near term.
This proposal raises several important legal considerations:
- The formation of a Special Committee of independent directors is important to ensure fairness and mitigate conflicts of interest, given the CEO's controlling stake.
- The proposal's commitment to follow the "Kahn v. M&F Worldwide Corp." procedures, including a non-waivable majority-of-minority approval condition, is a significant protective measure for minority shareholders.
- The Board must fulfill its fiduciary duties by thoroughly evaluating the offer and potentially seeking alternative bids to ensure maximum shareholder value.
- Regulatory scrutiny, particularly from the SEC, is likely given the nature of the transaction and the CEO's insider status.
While the proposed structure appears to address key legal requirements, shareholders and the Board should remain vigilant throughout the process to ensure full compliance with Delaware law and federal securities regulations.
This take-private proposal for TTEC reflects broader trends in the CX (customer experience) technology sector:
- The industry is experiencing rapid change, driving the need for strategic flexibility and long-term investments.
- Public market pressures can hinder innovation and necessary pivots in fast-evolving tech sectors.
- The premium offered (
55% -69% ) suggests potential undervaluation of CX tech companies in the public markets. - TTEC's move could trigger reevaluation of other public CX tech firms and potentially spark similar transactions.
For investors, this highlights the importance of assessing the long-term strategic positioning of CX tech companies and the potential for value realization through privatization or M&A activity. The outcome of this proposal could set a benchmark for valuations in the sector and influence investor sentiment towards similar companies.
The Company's Board of Directors has established a Special Committee consisting of independent directors. The Special Committee with its own advisors will evaluate the proposal and determine the appropriate course of action and process.
The proposal is conditioned on, among other things, the receipt of financing for the transaction, the negotiation and execution of a definitive agreement, as well as approval and recommendation of the proposal by the Special Committee and approval by holders of a majority of the shares of the Company's common stock not owned by Mr. Tuchman, his affiliates and company executive management.
There can be no assurance that any definitive offer will be received, that any definitive agreement will be executed relating to the proposal or that this or any other transaction will be approved or consummated. The Company does not undertake any obligation to provide any updates with respect to this or any other transaction, except as required under applicable law.
A copy of Mr. Tuchman's letter to the Board is included below:
September 27, 2024
Board of Directors
TTEC Holdings, Inc.
6312 South Fiddler's Green Circle
Suite 100N
Dear Members of the Board of Directors:
As you know, I founded TTEC Holdings, Inc. ("TTEC" or the "Company") more than 40 years ago and am proud of the business we have built over the decades. Given the rapid pace of change in our industry and the evolution of our business to meet the challenges of this dynamic environment, I have come to the conclusion that it is in the best interest of TTEC and its business partners, employees and shareholders to return to being a private and entrepreneurially led company. I am therefore submitting a non-binding proposal (the "Proposal") to acquire all of the outstanding shares of common stock (the "Common Stock") of the Company not already owned by me and my controlled affiliates (collectively, the "Proposing Group") for cash consideration at a purchase price of
The proposed purchase price represents a premium of
Exploring a take-private transaction is an important step at this juncture for TTEC. Such a transaction should provide benefits for all stakeholders – it would allow public shareholders to obtain liquidity, derisking their investment at a significant premium to the Company's current share price and at an implied transaction multiple above that of the Company's peers. At the same time, the Proposal will provide TTEC and its employees with the freedom to operate and make the strategic investments necessary to ensure long-term success, without the short-term focus of quarterly reporting and the other limitations attendant to being a public company.
The Proposing Group anticipates that the Board of Directors will establish and empower a special committee consisting solely of independent and disinterested directors (the "Special Committee") as required by
The Proposal is conditioned upon, among other things, negotiation and execution of a mutually satisfactory binding agreement with respect to the Proposal, as well as the receipt by the Proposing Group of equity and/or debt financing commitments in an amount and on terms acceptable to the Proposing Group. The Proposing Group has identified financial and legal advisors to work with to finalize the Proposal, and, with your engagement on behalf of the Company's other shareholders, will pursue detailed discussions with potential financing sources to provide committed financing for the Proposal.
In addition, the Proposing Group will only pursue a transaction that is expressly conditioned on the procedures described in Kahn v. M&F Worldwide Corp. and its progeny under
I founded TTEC with the goal of humanizing the customer experience, and continue to be deeply invested in the success of the business – the members of the Proposing Group beneficially own approximately
This letter is a non-binding expression of interest only, and the Proposing Group reserves the right to withdraw or modify the Proposal in any manner at any time, or to terminate discussions and negotiations with the Special Committee at any time in our sole discretion.
We thank you for your attention and are prepared to work expeditiously with the Special Committee and its advisors to agree to a definitive transaction. We look forward to working with you.
Sincerely,
Kenneth D. Tuchman
ABOUT TTEC
TTEC (pronounced T-TEC) Holdings, Inc. (NASDAQ:TTEC) is a leading global CX (customer experience) technology and services innovator for AI-enabled digital CX solutions. Serving iconic and disruptive brands, TTEC's outcome-based solutions span the entire enterprise, touch every virtual interaction channel, and improve each step of the customer journey. Leveraging next-gen digital technology, the Company's TTEC Digital business designs, builds, and operates omnichannel contact center technology, CRM, AI and analytics solutions. The Company's TTEC Engage business delivers AI-enhanced customer engagement, customer acquisition and growth, tech support, back office, and fraud prevention services. Founded in 1982, the Company's singular obsession with CX excellence has earned it leading client, customer, and employee satisfaction scores across the globe. The Company's approximately 54,000 employees operate on six continents and bring technology and humanity together to deliver happy customers and differentiated business results. To learn more visit us at https://www.ttec.com.
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SOURCE TTEC Holdings
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