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Dorel Industries Ord Shs Class A T.DII.A

Alternate Symbol(s):  DIIBF | T.DII.B

Dorel Industries Inc is a Canadian company that sells juvenile products and furniture. Its segments include Dorel Home and Dorel Juvenile. Dorel Home segment is engaged in the design, sourcing, manufacturing, and distribution of ready-to-assemble furniture and home furnishings which include metal folding furniture, futons, children's furniture, step stools, hand trucks, ladders, outdoor furniture, and other imported furniture items. Dorel Juvenile segment is engaged in the design, sourcing, manufacturing, distribution, and retail of children's accessories which include infant car seats, strollers, high chairs, and infant health and safety aids. Its geographical segments include Canada, the United States, Europe, Latin America, Asia, and Other countries.


TSX:DII.A - Post by User

Comment by McRambuson Dec 29, 2020 9:29am
122 Views
Post# 32190340

RE:Stop the privatization

RE:Stop the privatization
subliminal23 wrote:
There seams to be a misconception with this privatization deal with Cerebus Capital. Cerebus is not acquiring the stock they are financing the equity. Essentially the company is taking a loan against you equity to buy your shares. Then when the loan is repaid the board will own %100 of the shares. It is in the boards best interest for the valuation of the equity to be as low as possible to ensure the smallest loan that has to be repaid. Steps were taken prior to negatively effect the the valuation of the company. These steps included liquidating inventory at a discount, depreciating assets, depreciating goodwill, and restructuring. All of the these thing will decrease the valuation the company. It is no coincidence that this stock has gone from $40/share to $1/share in the 4 years preceeding the privatization deal. This is by design. If Covid never happened the robbery would be worse! Not only do I recommend to not sell but to also buy more stock. There is not any opportunities out there as good as this one. There is no guarantee in investing but in my opinion this company as least double the current valuation. If the board fails at the privatization of the company that is a win for minority shareholders. I believe the stock will jump because this has become more apparent now that the privatization has come to light. We just had our best quarter ever and it is trading at a third of the price it was in 2016! The play here is to buy/hold.



Thank you for that excellent video. I wish Letko, Fidelity and Brandes LP all see it.

I don't think what you are saying is correct. As far as I understand Cerberus is partnering with the family shareholders. The family will exchange their shares for 26.7% of the equity of the purchaser and this can increase if certain conditions are met. This does not appear to be a loan. Cerberus will end up owning everything above that 26.7% is my understanding. Now, what happens afterwards is anyones guess but unless I misread the circular this is Cerberus buying another beaten up companies on the cheap. Letko also never mentioned anything of this. I stand to be corrected though. Vote AGAINST this proposal.
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