- Dealnet Capital (DLS) has entered into a deal to be acquired by the privately held Simply Green Home Services
- The deal will see Simply Green acquire all outstanding shares in the business for a per share price of C$0.16
- The total equity in the deal is worth $47.8 million, and represents a 33 per cent premium on the company’s recent trading price
- The deal will finalise if Simply Green can acquire 66.66 per cent of the outstanding shares in Dealnet
- Dealnet Capital (DLS) is up 25 per cent and is trading at $0.15 per share
Dealnet Capital (DLS) has entered into a deal to be acquired by the privately held Simply Green Home Services.
The deal will see Simply Green acquire all outstanding shares in the business for a per share price of C$0.16.
The offer is a 33 per cent premium on the closing price of Dealnet’s common shares on August 21, and a 52 per cent premium on the 30 day weighted volume average price.
The deal will only go through if Simply Green can acquire no less than 66 and two thirds of a per cent of the customers outstanding shares.
Harold Bridge, Chairman of Dealnet, said the company’s peers had started to take notice of the dramatic turnaround of our operations over the last few years.
“Accordingly, the Board of Directors of the company determined that it would be in the best interests of the company and its shareholders to undertake a process to identify if a value-maximising transaction was available.
“After running a thorough process, the board believes that the cash offer from Simply Green represents full and fair value for our shareholders,” he said.
The Board and management of Dealnet have given the deal green light and believe the it to be fair, reasonable and in the best interests of the company.
The transaction would be worth a total of $47.8 million, and all Dealnet’s directors and executive officers have signed lock-up agreements tending their common shares to Simply Green.
Meanwhile, Simply Green’s CEO Lawrence Krimker said the company had invested strategically and looks to become a leader in home comfort and energy solutions sector.
“We are pleased that this transaction will add over $200 million of finance receivables to our growing business,” he said
Dealnet Capital (DLS) is up 25 per cent and is trading at $0.15 per share at 2:40 pm EDT.