Startek: Event-Driven Opportunity With 44% Potential Upside At Proposed Buyout Price

JunkBondage
298 Followers

Summary

  • Singapore-Based private equity firm Capital Square Partners engineered a combination of Aegis Global and 'old' Startek in 2018 to create the 'new' Startek that exists today.
  • This micro-cap business process outsourcing company runs outsourced customer contact centers, has improved sales and profitability, and has a declining stock price.
  • On December 20, 2021, Capital Square Partners disclosed that it had submitted a 'preliminary, non-binding proposal' to acquire all the outstanding shares of Startek not already owned by it for $5.40 per share.
  • The proposed $5.40 cash offer price represents 44% upside from Startek's closing price on Friday, April 29, 2022.

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In the following research report, I will outline the event-driven opportunity presented by the 55% private-equity owner of Startek's (SRT) proposal to purchase the remaining publicly-traded shares for $5.40 per share in cash, which is a

This article was written by

298 Followers
Former portfolio manager (Managing Director) desk head / senior analyst at a number of prominent hedge funds and prop desks on both sides of the pond in merger arbitrage/event-driven investing since the early '90s. Experienced in markets in the USA, Europe, Canada, Australia, etc. Now retired, investing for myself. Prior to that, four years in cross-border M&A and two years pre-MBA public accounting. CFA, CPA, Ivy MBA. Six-time ValueInvestorsClub.com best Idea winner.

Analyst’s Disclosure: I/we have a beneficial long position in the shares of SRT either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

All changes made per editorial request except company name, which is Startek, Inc. in SEC filings and on Company website, not StarTek, Inc., which is how SA spells it (incorrectly).

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