Investigation Overview
April 4, 2014 (Shareholders Foundation) - An investigation on behalf of investors, who currently hold shares of DFC Global Corp (NASDAQ:DLLR) shares, was announced concerning whether the takeover of DFC Global Corp by an affiliate of Lone Star Funds for $9.50 per share is unfair to NASDAQ:DLLR stockholders.
The investigation by a law firm concerns whether certain officers and directors of DFC Global Corp breached their fiduciary duties owed to NASDAQ:DLLR investors in connection with the proposed acquisition.
On April 2, 2014, DFC Global Corp announced that it has entered into an agreement to be acquired by an affiliate of Lone Star Funds in a transaction, including the assumption of net debt, valued at approximately $1.3 billion.
Under the terms of the agreement, DFC Global stockholders will receive $9.50 in cash for each share of DFC Globals common stock they own.
However, given that NASDAQ:DLLR shares traded as recently as January 2014 to as high as $11.59 per share, respectively as high as $13.15 per share in November 2013, and that at least one analyst has set the high target price at $15.00 per share, the investigation concerns whether the $9.50-offer is unfair to NASDAQ:DLLR stockholders. More specifically, the investigation concerns whether the DFC Global Board of Directors undertook an adequate sales process, adequately shopped the company before entering into the transaction, maximized shareholder value by negotiating the best price, and acted in the shareholders' best interests in connection with the proposed sale.
In addition, DFC Global Corps performance improved recently. For instance, DFC Global Corp reported that its Total Revenue rose from $59.40 per share for the 12 months period that ended on June 30, 2010 to over $1.03 billion for the 12 months period that ended on June 30, 2013.
Shares of DFC Global Corp (NASDAQ:DLLR) closed on April 3, 2014, at $9.62 per share.