Apr. 29 at 11:00 PM
$DDI with this offer, following years of refusing to return shareholder value, It's clear management of doubleU views the US shareholders as less than their Korean listed counterpart.
$DUG makes 2/3rds of their FCF from DDI despite their stake making up less than 40% of DUGs Market CAP. Yet DUG pays it's Korean shareholders dividends and repurchases their own shares. They did this intentionally to squeeze out STIC and now they will squeeze out us if the special committee and minority shareholders allow it. Including the 95% approval prerequisite ensures this deal doesn't go through south of
$18 a share in my opinion. But in fact I don't see a scenario that the nearest DCF of an investment bank comes under
$20/share. We know B.riley launched a tender offer at
$18 back in 2021 when the business was less profitable, diverse, and held half as much cash. FCF is now 50%/175% higher than it was in 2021/2022 when b.riley paid an average of ~
$17 for their shares. B.Riley won't take less than
$20.
