Investment company

Plantro Ltd.

withdrew a proposal to acquire

legal software provider
Dye & Durham Ltd.

, saying the board didn’t show much interest in the idea. The shares plunged to a record low.

The offer was worth US$10.25 per Dye & Durham share, according to a statement Monday from Plantro, the Jersey-based firm of

Matthew Proud

, who’s the software firm’s former chief executive. That would have valued the company at nearly US$700 million.

“Plantro is evaluating its

ownership position

in Dye & Durham’s shares and may seek to reduce or exit its holdings,” the statement said. It held about 11 per cent of Dye & Durham’s shares as of early June, according to data compiled by Bloomberg.

Shares of Dye & Durham were down 19 per cent to $5.35 as of 1:14 p.m.

in Toronto

. Earlier they had fallen more than 21 per cent to reach the lowest intraday level since the company’s 2020 initial public offering.

Proud and Dye & Durham’s board have had a contentious relationship after he lost a proxy fight last year, resulting in his departure from the company. The sides reached a truce in July, when Dye & Durham’s board agreed to launch a review of strategic options, including a potential sale.

The company has faced a number of problems since then, including failing to meet the deadline for filing its financial statements for the fiscal year ended June 30.

Dye & Durham said Monday that it’s taking legal action in an Ontario court to enforce July’s “cooperation agreement” with Plantro and Proud. It said it has been evaluating Plantro’s takeover offer but that it has until Dec. 29 to start a process seeking initial proposals, and that it wants to have a “robust sales process.”

In its news release announcing the withdrawal of its offer, Plantro said Dye & Durham is suffering from deteriorating profitability and that the board didn’t engage with its takeover plan. Plantro also argued that Dye & Durham is at risk of a debt default by March 2026.

  • Dye & Durham’s ex-CFO ramps up pressure on board to sell company
  • Dye & Durham received $1.3B takeover bid, but says it’s not in talks

Bloomberg.com