ADW Capital offers to buy Driven Brands for $18 a share
Updated
Updated · The Wall Street Journal · Apr 30
ADW Capital offers to buy Driven Brands for $18 a share
7 articles · Updated · The Wall Street Journal · Apr 30
Driven Brands shares rose after ADW sent a Thursday letter to the company and majority owner Roark Capital, valuing the bid at roughly a 40% premium to Wednesday's close.
The latest report confirms the activist hedge fund has formally approached both Driven and Roark with the takeover proposal for the automotive services provider.
Earlier reporting said ADW was highly confident of financing the nearly $3bn bid and wanted to buy all outstanding shares, while criticising Driven's structure and governance.
Why did an activist fund slash its valuation of Driven Brands from over $30 to just $18 per share in one month?
Is a planned $2B restaurant IPO causing a private equity giant to neglect its struggling automotive company?
Should shareholders accept a lowball offer or risk holding a stock plagued by 'material errors' and potential delisting?