DHI receives takeover bid from majority shareholder
DHI Group Inc., which has an operations center in Urbandale, acknowledged Thursday that its board has received a takeover bid from its largest shareholder, TCS Capital Management, a New York-based hedge fund. In a letter to DHI’s board, TCS Capital President Eric Semler said the board has “shown a complete disregard for the best interests of DHI shareholders and its fiduciary duty to maximize shareholder value,” and offered to buy the company for $2.50 per share in cash. The proposed purchase price, according to TCS, represents approximately a 25 percent premium to the current trading price and five times earnings before interest, taxes, depreciation and amortization. TCS, which owns approximately 10 percent of DHI’s shares, had submitted an all-cash offer in December that DHI’s board rejected, according to Semler. TCS gave the board a Sept. 5 deadline to respond to its new offer. In a filing with the Securities and Exchange Commission, DHI said its board and management “consistent with their fiduciary duties, plan to fully explore and respond to TCS’ new proposal.” DHI operates a portfolio of professional recruiting websites.