DFC Global Corp. Stockholders Approve Transaction with Lone Star
June 06 2014 - 9:20AM
Business Wire
Transaction Expected to Close
Promptly
DFC Global Corp. (NASDAQ:DLLR) (“DFC Global” or “the Company”),
a leading international diversified financial services company
serving primarily unbanked and under-banked consumers for over 30
years, today announced that, at the Company’s special meeting of
stockholders held today, a majority of the outstanding shares of
DFC Global common stock voted to approve the acquisition of DFC
Global by an affiliate of Lone Star Funds (“Lone Star”). The
transaction is expected to close promptly.
“We are pleased with the outcome of today’s special meeting, and
I want to thank DFC Global stockholders for their support,” said
Jeff Weiss, DFC Global’s Chairman and Chief Executive Officer. “The
Board firmly believes that this transaction, which is the
culmination of a thorough process, is in the best interests of all
stockholders. We look forward to completing the transaction with
Lone Star expeditiously and expect a smooth transition to private
ownership.”
Houlihan Lokey Capital, Inc. is acting as financial advisor to
DFC Global in connection with the transaction. Pepper Hamilton LLP
is acting as DFC Global’s legal advisor. Jefferies LLC is acting as
lead financial advisor to Lone Star Funds and Credit Suisse
Securities (USA), LLC is acting as financial advisor. Jefferies
Finance LLC and Credit Suisse AG are providing debt financing
commitments for the acquisition. Gibson, Dunn & Crutcher LLP is
acting as legal counsel to Lone Star Funds.
Upon completion of the proposed transaction, DFC Global
stockholders will receive $9.50 per share in cash for each share of
DFC Global common stock owned.
About DFC Global Corp.
DFC Global Corp. is a leading international non-bank provider of
alternative financial services, principally unsecured short-term
consumer loans, secured pawn loans, check cashing, gold buying,
money transfers and reloadable prepaid debit cards, serving
primarily unbanked and under-banked consumers through its
approximately 1,500 current retail storefront locations and its
multiple Internet platforms in ten countries across Europe and
North America: the United Kingdom, Canada, the United States,
Sweden, Finland, Poland, Spain, Romania, the Czech Republic and the
Republic of Ireland. The Company’s networks of retail locations in
the United Kingdom and Canada are the largest of their kind by
revenue in each of those countries. For more information, please
visit the Company’s website at www.dfcglobalcorp.com.
The Company believes that its customers, many of whom receive
income on an irregular basis or from multiple employers, choose to
conduct their personal financial business with the Company rather
than with banks or other financial institutions due to the range
and convenience of services that it offers, the multiple ways in
which they may conduct business with the Company and its
high-quality customer service. The Company’s products and services,
principally its unsecured short-term consumer loans, secured pawn
loans and check cashing and gold buying services, provide customers
with convenient access to cash for living expenses and other needs.
In addition to these core offerings, the Company strives to offer
its customers additional high-value ancillary services, including
Western Union® money orders and money transfers, reloadable VISA®
and MasterCard® prepaid debit cards and foreign currency
exchange.
About Lone Star Funds
Lone Star is a global private equity firm that invests in real
estate, equity, credit, and other financial assets. Since the
establishment of its first fund in 1995, Lone Star has organized
twelve private equity funds with aggregate capital commitments
totaling over $45 billion. The Funds are advised by Lone Star
Global Acquisitions, Ltd. (LSGA), an investment adviser registered
with the U.S. Securities and Exchange Commission. LSGA and its
global subsidiaries advise the Funds from offices in North America,
Western Europe and East Asia.
Forward-Looking Statements
This news release contains forward-looking statements,
including, among other things, statements regarding the following:
the Company’s future results, growth, guidance and operating
strategy; the global economy; the effects of currency exchange
rates and fluctuations in the price of gold on reported operating
results; the regulatory environment in Canada, the United Kingdom,
the United States, Scandinavia and other countries; the impact of
future development strategy, new stores and acquisitions;
litigation matters; financing initiatives; and the performance of
new products and services. These forward-looking statements involve
risks and uncertainties, including risks related to: the Company’s
ability to maintain relationships with customers and employees
following the announcement of the transaction, the ability of third
parties to fulfill their commitments relating to the transaction,
including providing financing, the ability of the parties to
satisfy the closing conditions, and the risk that the transaction
may not be completed in the anticipated time frame or at all; the
regulatory environments of the jurisdictions in which we do
business, including reviews of our operations principally by the
CFPB in the United States and the Financial Conduct Authority in
the United Kingdom, and other changes in laws affecting how we do
business and the regulatory bodies which govern us; current and
potential future litigation; the identification of acquisition
targets; the integration and performance of acquired stores and
businesses; the performance of new stores and internet businesses;
the impact of debt and equity financing transactions; the results
of certain ongoing income tax appeals; the effects of new products
and services, or changes to our existing products and services, on
the Company’s business, results of operations, financial condition,
prospects and guidance; and uncertainties related to the effects of
changes in the value of the U.S. Dollar compared to foreign
currencies. There can be no assurance that the Company will attain
its expected results, successfully integrate and achieve
anticipated synergies from any of its acquisitions, obtain
acceptable financing, or attain its published guidance metrics, or
that ongoing and potential future litigation or the various U.S.
Federal or state, U.K., or other foreign legislative or regulatory
activities affecting the Company or the banks with which the
Company does business will not negatively impact the Company’s
operations. A more complete description of these and other risks,
uncertainties and assumptions is included in the Company’s filings
with the Securities and Exchange Commission, including those
described under the heading “Risk Factors” in the Company’s Annual
Report on Form 10-K for the Company’s fiscal year ended June 30,
2013, as amended in its Form 10-Q for the quarter ended December
31, 2013 and in its Form 10-Q for the quarter ended March 31, 2014.
You should not place any undue reliance on any forward-looking
statements. The Company disclaims any obligation to update any such
factors or to publicly announce results of any revisions to any of
the forward-looking statements contained herein to reflect future
events or developments.
DFC Global Corp.ICRInvestor Relations:Garrett Edson,
484-320-5800orMedia:Phil Denning, 646-277-1200orLone Star FundsJoele Frank, Wilkinson Brimmer
KatcherAndy Brimmer / Jed Repko / Joseph Sala, 212-355-4449
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