By Svea Herbst-Bayliss
NEW YORK (Reuters) – Influential proxy advisory agency Institutional Shareholder Companies really helpful 3D printer producer Stratasys shareholders reject plans to purchase Desktop Steel, saying one other supply “presents a extra convincing path to worth creation,” in a be aware seen by Reuters on Wednesday.
ISS’s suggestion, which tends to hold vital weight with shareholders, comes solely days earlier than the Sept. 28 vote and marks the most recent twist in a years-long drama over how the 3D printing trade could also be consolidated.
“It isn’t clear that it (the all-stock supply Stratasys made for Desktop Steel) creates worth for 3D printer producer Stratasys shareholders,” ISS wrote in its be aware to shoppers with a headline “vote in opposition to acquisition at SSYS assembly.”
Representatives for Stratasys didn’t instantly reply to a request for remark.
As a substitute, ISS wrote {that a} bid from 3D Techniques to purchase Stratasys, which was disclosed final week and is the most recent in a collection of overtures to purchase the corporate that now plans to purchase another person, would supply extra worth to shareholders.
Desktop Steel made its all-stock deal proposal on Could 25, valuing its fairness at roughly $591 million in combination.
The deal would generate about $50 million in income synergies plus $50 million in annual price financial savings by 2025, the Stratasys board has argued. The administrators felt this deal was extra enticing than others, together with overtures from 3D Techniques and Nano Dimension.
However as Stratasys’, Desktop Steel’s and 3D Techniques’ share costs have dropped within the final 52 weeks, ISS argued that 3D Techniques’ money and inventory supply for Stratasys “holds out an vital hedge in opposition to additional declines.”
3D Techniques supplied to pay $7 in money and 1.6387 3D shares per Stratasys share, which would depart them proudly owning 46% of the mixed firm. Stratasys final week rejected the supply and stated it was terminating discussions with 3D.
Stratasys investor Nano Dimension, which owns 14.1% of the corporate, stated final week that it could vote in opposition to the merger.
(Reporting by Svea Herbst-Bayliss; Modifying by Josie Kao)
