DMC Global says Steel Connect has rejected requests to enter customary NDA
DMC Global (BOOM) announced its Board of Directors responded to a press release from Steel Connect (STCN) in connection with its May 31, 2024, unsolicited offer to acquire DMC, and a related offer on September 17 to acquire the Company, or alternatively, its DynaEnergetics and NobelClad businesses. The company said, "Since the initial offer, the Board directly, and through its financial and legal advisors, has repeatedly offered Steel Connect an opportunity to participate in the Board's review of strategic alternatives subject to standard terms and conditions. Steel Connect has rejected DMC's requests to enter into a customary non-disclosure agreement and a limited, 30-day standstill agreement, which are intended to protect the Company's confidential information and the integrity of the strategic alternatives process. In addition, Steel Connect has demanded the details of all offers and indications of interest provided by the other participants in the process. This demand is unacceptable as it interferes with the Board's role in managing the strategic review process. The Board would look forward to exchanging information and engaging with Steel Connect, subject to entering into an agreement with customary provisions that protect the rights of all stockholders." There can be no assurance this process will result in any transaction or other alternative, nor any assurance as to its outcome or timing. There is no timetable for completion of this process and DMC does not intend to comment further unless and until it determines additional disclosure is necessary or appropriate.
