Ademi LLP is investigating Startek (NYSE: SRT) for possible breaches of fiduciary duty and other violations of law in its transaction with Capital Square Partners.
In the transaction, Startek stockholders are expected to receive only $4.30 per share in an all-cash transaction with a total enterprise value of approximately $217 million and total equity value of approximately $174 million. The transaction agreement unreasonably limits competing transactions for Startek by imposing a significant penalty if Startek accepts a competing bid. Startek insiders will receive substantial benefits as part of change of control arrangements.
We are investigating the conduct of Startek’s board of directors, and whether they are fulfilling their fiduciary duties to all shareholders.