Legal software company Dye & Durham has halted its sale process due to shareholder feedback amid reported bids from firms like PEXA Group.
Dye & Durham’s efforts to sell will be paused until an annual shareholder meeting on December 17 following a dispute with investors Mawer, EdgePoint, and Engine Capital.
PEXA declined to comment on a potential bid on Tuesday, saying in an ASX statement: “In the ordinary course of business, the Company is continuously assessing opportunities to deliver increased shareholder value. PEXA, is aware of, and will continue to comply with its continuous disclosure obligations and is comfortable that it has nothing to disclose at this time.”
Engine Capital has recommended Dye & Durham replace its board directors, rather than proceeding with a sale or merger. After first rejecting the proposal on procedural grounds, Dye & Durham accepted this week.
Mawer and Edgepoint also reportedly stood against the potential bids, and favour replacing the company’s management team as well as its board.
PEXA Group, an Australian property technology company, has informally bid for Dye & Durham, according to the Australian Financial Review.
This would be PEXA’s second overseas expansion after acquiring U.K. conveyancing technology provider Smoove last year.
Dye & Durham has reportedly received three other conditional sale offers from companies in the U.S. and Canada, with all four bids around CA$20 per share.
Dye & Durham’s (TSE: DND) share price closed at $18.42, up from the previous day’s $17.99. Its market cap is $1.23 billion.