Plantro withdraws acquisition bid for Dye & Durham, reviews its stake

Dye & Durham

20/10/2025 15:38

Oct 20 (Reuters) - Dye & Durham's DND.TO second-largest shareholder Plantro withdrew its proposal to acquire the Canadian legal software maker and may reduce or exit its holdings, citing deteriorating financial results and a lack of board engagement.

Shares of Toronto-listed Dye sank around 19%.

Plantro on Monday said several factors contributed to its decision, including Dye's "likely debt default" before a sale could close and an inability to produce financial statements.

Plantro has an 11% stake in Dye, according to data compiled by LSEG.

It added the acquisition was premised on Dye-owned Credas Technologies not being sold, but Dye announced its divestiture earlier this month, despite Plantro advising against it.

Earlier this year, Matthew Proud, former CEO of Dye and head of Plantro, said he would call a special shareholder meeting unless the board could consider changes he proposed to top-level management.

This led to a series of conflicts between Dye and Plantro, including battles over top-level executive changes, proxy fights and a push to sell the company.

In July, both firms announced a truce, under which Dye would review strategic alternatives to stabilize its finances and consider selling itself.

"The proceeds of the sale (of Credas) were earmarked for debt reduction, and represented just ~8% of the company's total debt and liability burden and the transaction has not been accretive to shareholders," Plantro said.

Separately, Dye on Monday said it would take legal action in the Ontario Superior Court of Justice to enforce the terms of the July agreement with Plantro.

The firm will seek a declaration that the truce remains fully valid and in force as well as an injunction prohibiting Plantro and Proud from breaching its terms.

 (Reporting by Zaheer Kachwala in Bengaluru; Editing by Vijay Kishore)

 ((Zaheer.Kachwala@thomsonreuters.com;))