Berwyn Payday Lender Battles Negative Stock Rating

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In the midst of a proposed sale, Berwyn-based payday and pawn shop lender DFC Global Corp. this week disputed a negative stock rating by Institutional Shareholder Services, saying its $9.50-per-share bid from Dallas private equity firm Lone Star Funds is a fair price considering DFC’s dwindling projected earnings and volatility in its key United Kingdom market.

“DFC Global strongly believes that ISS reached the wrong conclusion in failing to recommend that stockholders vote ‘FOR’ the acquisition of DFC Global by Lone Star,” the company announced, as reported by Philly.com.

Stock market trading of DFC stock was just below the $9.50 buyout price earlier this week, though DFC contends that price has been inflated by the prospect of the sale.

“Lone Star’s proposal would allow DFC Global stockholders to recognize significant, immediate and certain cash value for their investment, transferring all business risks and regulatory uncertainty to Lone Star,” DFC said.

Read more about DFC’s points of contention against the ISS rating on Philly.com here.

 

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