DMC Global Still Potential Acquisition Target, Steel Connect Chairman Says
DMC Global is still a potential acquisition target for Steel Connect, according to Steel Connect's executive chairman, Warren Lichtenstein. Steel Connect, which owns nearly 10% of DMC's stock, previously offered $16.50 per share for DMC and proposed acquiring its DynaEnergetics and NobelClad divisions for $185 million. Despite DMC's announcement to halt marketing these divisions, Steel Connect believes that a transaction would provide greater value for DMC shareholders. DMC shares rose about 3% in recent trading.
DMC Global remains a potential acquisition target by Steel Connect almost a year after the engineered products company began a strategic review of its DynaEnergetics and NobelClad divisions, Warren Lichtenstein, Steel Connect executive chairman, said in a letter to the DMC board Monday.
Steel Connect, which already owns almost 10% of DMC Global's outstanding stock, made a $16.50-per-share acquisition offer for DMC last May but was met by DMC Global adopting a shareholder rights program intended to turn away unwanted takeover efforts.
Steel Connect reiterated its $16.50-per-share offer in September, and as an alternative, also proposed buying DynaEnergetics and NobelClad for about $185 million in cash. It repeated those offers in November despite an Oct. 21 announcement by DMC Global it was "no longer actively marketing DynaEnergetics and NobelClad."
"We believe that any of the above potential transactions would create superior value for DMC stockholders, as opposed to the alternative of inaction and remaining a standalone company," Lichtenstein said in the letter on Monday.
DMC and Steel Connect did not immediately respond to messages from MT Newswires on Monday seeking comment and additional information.
DMC shares were about 3% higher in recent trading.
