Dye & Durham’s Ex-CFO Urges Sale After Stock Drops, Debt Mounts
A former senior executive and shareholder of Canadian technology firm Dye & Durham Ltd. is asking the board to consider a full sale of the company, citing a plunge in shareholder value and growing competitive pressures.
Ronnie Wahi, who was chief financial officer until 2018, criticized the company’s strategic direction in a letter sent to directors on Thursday, saying nearly C$1 billion in equity value has been lost under the current board.
Shares of Dye & Durham have dropped about 55% over the past six months, giving the company a market capitalization of approximately C$650 million. The firm has struggled to attract new investors and trim its debt levels, according to Wahi, which has soured market sentiment on the stock. Long-term debt was C$1.6 billion as of March, up from C$1.3 billion two years earlier, according to data compiled by Bloomberg.
Dye & Durham and Wahi did not immediately respond to requests for comment.
“It is difficult to see how the company can unlock shareholder value as a public entity within a reasonable time frame,” wrote Wahi, who’s also a former board member. He urged directors to “consider a full sale process to provide shareholders with alternatives and the opportunity to realize the present value of their investment.”
The current board came to power following a contentious proxy fight last year that led to the departure of then-Chief Executive Officer Matthew Proud. Dissident shareholders led by New York-based Engine Capital rallied enough support to replace a majority of the board and install new leadership committed to restoring credibility and financial discipline. Engine’s founder, Arnaud Ajdler, became the chair.
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