DFC Global To Be Taken Private In About $1.3 Bln Deal; Cuts FY14 View

(RTTNews) - DFC Global Corp. (DLLR), a diversified financial services company, Wednesday announced that it has entered into a definitive agreement to be acquired by an affiliate of private equity firm Lone Star Funds in about $1.3 billion deal, including the assumption of net debt.

Upon completion of the transaction, DFC Global will become a privately held company.

Under the deal terms, DFC stockholders will receive $9.50 in cash for each share they own. This represents a premium of approximately 5.8 percent to DFC's closing stock price on April 1, and a premium of 12.3 percent to DFC's 30-day volume weighted average stock price for the period ended April 1.

The agreement was unanimously approved by DFC's Board of Directors.

The transaction is subject to customary closing conditions, including receipt of stockholder approval and certain approvals from both U.S. and foreign regulators. The deal is expected to close in the third calendar quarter of 2014.

Separately, DFC announced preliminary results for the third quarter, expecting pro forma operating loss per share to be in the range of $0.04 to flat.

Total consolidated revenue for the quarter is expected to be in the range of $248 to $252 million. Consolidated adjusted EBITDA for the fiscal 2014 third quarter is expected to be in the range of $34.0 to $36.0 million.

On average, 9 analysts polled by Thomson Reuters expected the company to report earnings of $0.12 per share for the quarter. Analysts' estimates typically exclude special items. Analysts estimated revenues of $269.93 million for the quarter.

Further, the company reduced its fiscal 2014 pro forma operating earnings guidance to between $0.04 to $0.12 per share from previous range between $0.35 and $0.80 per share. Analysts expect earnings of $0.48 per share.

The company also reduced its guidance for adjusted EBITDA between $151.0 and $156.0 million, as compared to its previous range of between $170.0 million and $200.0 million.

The company said the new ranges of guidance reflect principally the revenue and expense effects of the transition in the U.K. to a new regulatory environment.