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CDI appoints investment bank to sound out interest
Posted on Monday, 20 March 2017 14:36
CDI, the engineering and technology company that also has a strong hold of staffing and human resource services, is working with Houlihan Lokey to explore a potential sale, among other strategic alternatives.
Shares in the firm closed down slightly at USD 7.45 on 17th March, the last trading day prior to the announcement, valuing the group at USD 139.12 million.
CDI’s trading price has increased 27.8 per cent over the last 12 months; however, stocks have fallen 12.4 per cent since the beginning of the year.
This follows December reports which suggested the group was exploring alternatives, which could include a disposal of all or part of the company.
The review will be conducted alongside CDI’s ongoing transformation that focuses on disciplined operations and sales effectiveness.
Chief executive Michael Castleman said: “As the board carefully considers potential strategic avenues to enhance value, the management team and the thousands of associates at CDI remain focused on our ongoing transformation to accelerate growth and expand profitability.
“We are excited about the company's prospects and ability to enhance shareholder value under our transformation strategy, regardless of the outcome of a strategic alternative process."
As part of this plan, CDI will execute several enterprise-wide programmes to drive revenue through deeper penetration of existing clients and industry verticals, acceleration of high-end information technology services and unification of its operating platform.
The company offers engineering design project services, information technology projects and managed services, including staffing and providing clients with new professional talent.
CDI recently announced its 2016 earnings, which showed a 12.3 per cent decrease in revenue to USD 864.37 million in the financial year ended 31st December 2016, from USD 985.49 million in the previous 12 months.
Adjusted loss before interest, taxes, depreciation and amortisation totalled USD 2.13 million in FY 2016, compared to a profit of USD 13.18 million in FY 2015.
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