Danka Business Services stockholder opposes terms of pending sale
Written on June 11, 2008
A shareholders' group that owns 6 percent of the stock of Danka Business Systems PLC is speaking out against some of the terms of the planned sale of Danka's operations to Konica Minolta.
DCML LLC, a group based in New York, said in a filing with the Securities and Exchange Commission that while it supports the $240 million sale of Danka Office Imaging Co., the company's U.S. operations that are based in St. Petersburg, it opposes the way the proceeds would be distributed.
Danka's parent company, Danka Business Systems PLC (OTCBB: DANKY), based in London, would liquidate after the sale under terms of the deal and ordinary shareholder would receive about 10 cents per American Depository Share, for a total of $6.5 million pay day loan. However, the company's largest shareholder, Cypress Merchant Banking Partners II LP, would receive more than $100 million, which DCML said in its filing is "grossly unfair."
In the filing, DCML proposed structuring the transaction so that all shareholders would receive between $1.18 and $1.28 a share.
DCML said in the filing that it intends to vote against the liquidity, which will be presented to shareholders at a meeting in August.
Filed in: economics.