Special Committee of Startek Updates Stockholders on Status of Preliminary Non-Binding Proposal by CSP
The Special Committee of the Board of Directors of Startek, Inc.
(NYSE: SRT) announced today that it has received a non-binding
proposal, dated August 8, 2022, from CSP Management Limited and
certain of its affiliates (collectively, CSP) to acquire all the
shares of Startek that CSP does not already own for $4.65 per share
in cash. CSP is currently the beneficial owner of approximately 56%
of the outstanding shares of Startek.
This new proposal constitutes a revision of CSP’s non-binding
proposal, dated December 20, 2021, to acquire all the shares of
Startek that CSP does not already own for $5.40 per share in cash.
In response to the proposal made on December 20, 2021, the Special
Committee sought to determine whether the proposal was actionable
and therefore requested that CSP provide reliable evidence that CSP
would have access to the funds necessary to finance the proposal.
Initially, CSP responded to these requests from the Special
Committee by informing the Special Committee that CSP intended to
fund the proposal entirely with debt financing, but that CSP was
still in the process of trying to line up this debt financing.
After continuing inquiries by the Special Committee to CSP as to
whether the proposal would be able to be financed, CSP informed the
Special Committee, as outlined in its filing of June 21, 2022 on
Schedule 13D, that CSP intended to fund the proposal with up to $20
million of equity, to which CSP confirmed it had access at that
time, and the remainder with debt financing, which CSP stated it
was still in the process of trying to line up and for which CSP
anticipated obtaining commitments by August 9, 2022. In sum, CSP
has been working since its initial non-binding proposal was made on
December 20, 2021 to see whether CSP could line up the financing
necessary to fund the transaction described in the proposal.
Now CSP has informed the Special Committee that CSP was not able
to arrange a debt and equity financing package on terms acceptable
to CSP for its proposal, dated December 20, 2021, at $5.40 per
share, that CSP has withdrawn its proposal, dated December 20,
2021, at $5.40 per share, and that CSP is replacing it with a new
proposal, dated August 8, 2022, at $4.65 per share to be funded
exclusively with equity financing. CSP has confirmed to the Special
Committee that investment funds managed by affiliates of CSP have
available cash and/or unfunded capital commitments in an aggregate
amount that is sufficient to fund, in the form of equity financing,
the entire acquisition consideration and all related costs and
expenses for the proposed transaction at $4.65 per share and that
CSP currently intends to apply such cash and commitments to the
equity financing of this proposed transaction. In addition, CSP has
reconfirmed to the Special Committee that CSP is not at this time
interested in exploring any transaction where CSP would be a seller
of its interest in Startek.
At this time, no determinations have been made by the Special
Committee about the fairness or adequacy of the price per share
specified in CSP’s revised, non-binding proposal or any of the
other terms and conditions for the proposed transaction.
There can be no assurance that any definitive offer will be made
or accepted, that any agreement will be executed, or that any
transaction will be consummated.
Foros is serving as financial advisor to the Special Committee
and Freshfields is serving as legal counsel.
Startek and the Special Committee do not intend to comment
further about this proposal or any other potential transaction,
unless and until a specific transaction is approved by the Special
Startek is a global provider of tech-enabled customer experience
(CX) management solutions, digital transformation, and technology
services to leading brands. Startek is committed to impacting
clients’ business outcomes by enhancing customer experience and
digital and AI enablement across all touch points and channels.
Startek has more than 46,000 employees spread across 42 delivery
campuses in 13 countries. The company services over 175 clients
across a range of industries, including banking and financial
services, insurance, technology, telecom, healthcare, travel and
hospitality, e-commerce, consumer goods, retail, media & cable
and energy and utilities. To learn more, visit www.startek.com.
The matters regarding the future discussed in this news release
include forward-looking statements as defined in the Private
Securities Litigation Reform Act of 1995. Such forward-looking
statements are intended to be identified in this document by the
words “anticipate,” “believe,” “estimate,” “expect,” “intend,”
“may,” “objective,” “outlook,” “plan,” “project,” “possible,”
“potential,” “should” and similar expressions. As described below,
such statements are subject to a number of risks and uncertainties
that could cause Startek's actual results to differ materially from
those expressed or implied by any such forward-looking statements.
Readers are encouraged to review risk factors and all other
disclosures appearing in the Company's Form 10-K for the fiscal
year ended December 31, 2021, as filed with the Securities and
Exchange Commission (SEC) on March 14, 2022, as well as other
filings with the SEC, for further information on risks and
uncertainties that could affect Startek's business, financial
condition and results of operation. Copies of these filings are
available from the SEC, the Company’s website or the Company’s
investor relations department. Startek assumes no obligation to
update or revise any forward-looking statements as a result of new
information, future events or otherwise. Readers are cautioned not
to place undue reliance on these forward-looking statements that
speak only as of the date herein.
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Investor Relations Cody Cree Gateway Group, Inc. (949)
Media Relations Zainab Boxwala Startek
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