HALIFAX – DHX Media said Tuesday that Indian company Sakthi Global Holdings has made an unsolicited offer for the company.
A statement from the children's content and brands company confirmed that it has “received communication” of an unsolicited merger proposal from Sakthi Global Holdings, but has not been able to verify that company’s ability to carry out a transaction.
DHX Media added that it will consider and evaluate any formal offer, but cautioned that can be no certainty that a transaction will take place with Sakthi Global Holdings or any other party. The company's board of directors will consider and evaluate any formal offer that is received in due course, continued the statement.
Headquartered in London, Sakthi Global Holdings is a majority holding company of Sakthi Automotive Group but also has interests in financial technology and blockchain.
Referencing a report from Business World India that valued the deal at $5.32 per share, Canaccord Genuity analyst Aravinda Galappatthige said that “there are many areas of uncertainty” in the offer.
“…there do not appear to be any synergies between the companies, particularly given the automotive focus of Sakthi. While there are other unrelated businesses in the group, we fail to see the link to kids content and media,” he wrote in a note to clients.
“Lastly, in terms of process, we fail to understand why the offer was publicized so early on before giving DHX’s board an opportunity to evaluate. Normally, an offer would be made directly to the board and discussions had on the various terms. It is only if the board is seemingly unsupportive that the unsolicited/hostile route is adopted. Hence, the whole approach of Sakthi appears unusual to us.”
