$39-a-Share Cash Takeover Bid for Applebee's and IHOP Franchisor
DIN sits 52% above its 52-week low of $23.225 on elevated volume (3.8× avg).
Summary
Cobblers Cove Capital and Arkhouse Management submitted a $39-a-share cash offer for Dine Brands to the board on Monday, Bloomberg reported Wednesday. That is roughly 10% above the $35.37 share price and values the Applebee's and IHOP franchisor at a premium to where it has been trading. The group already has economic exposure to almost 20% of the shares through swaps and other instruments, and is willing to raise the offer pending due diligence and access to management. Shares jumped 9.3% on the report. The bid lands after a rough stretch for the company: Q2 earnings showed a steep drop in profit on higher interest costs, shrinking franchise royalties and losses from newly acquired company-owned restaurants. A nearly 20% economic stake plus a willingness to go higher makes this a credible approach rather than a casual inquiry, though the board has not commented and no deal terms beyond the $39 cash figure are public.
At the time of this announcement, DIN was trading at $35.37 on NYSE in the Trade & Services sector, with a market capitalization of approximately $439M. The 52-week trading range was $23.23 to $39.68. This news item was assessed with positive market sentiment and an importance score of 9 out of 10. Source: Seeking Alpha.