Plantro Withdraws Dye & Durham Acquisition Proposal

Core Viewpoint - Plantro Ltd. has withdrawn its acquisition proposal for Dye & Durham Limited due to deteriorating financial results, lack of board engagement, and concerns over potential debt default [2]. Financial Performance - Dye & Durham's EBITDA has significantly declined from approximately $300 million to below $200 million, prompting credit rating downgrades from S&P Global and Moody's [2]. - The company's elevated leverage ratios and operational challenges have contributed to its financial instability [2]. Proposal Withdrawal Reasons - The proposal was initially justified by the expectation of board engagement, which has not occurred [2]. - The company adopted a poison pill strategy, incorrectly alleging that Plantro was acting in concert with other shareholders [2]. - The sale of Credas Technologies Ltd. was contrary to the proposal's assumptions, and the proceeds from this sale are insufficient to alleviate the company's debt burden [2]. Debt Concerns - Plantro anticipates that Dye & Durham may face a debt default by March 2026, as it will lose access to $185 million in escrowed cash against its debt [2]. - The lengthy regulatory approval process for any potential sale could delay closing until Q2 2026, exacerbating the company's financial situation [2]. Regulatory and Management Issues - A Management Cease Trade Order has been imposed by the Ontario Securities Commission due to the company's failure to produce financial statements [2]. - The company's shares are trading at a high valuation despite declining revenue and EBITDA, indicating a disconnect between market perception and financial reality [2].