07:39 AM EDT, 10/23/2024 (MT Newswires) -- Engine Capital LP, which owns approximately 7.1% of Dye & Durham Limited's ( DYNDF ) outstanding shares, on Wednesday issued a statement regarding Dye & Durham's ( DYNDF ) confirmation that it is exploring a sale of the company.

DND gained near 10% on the news yesterday.

Engine Capital in its statement said: "Dye & Durham ( DYNDF ) is a high-quality business that is currently underearning due to CEO Matthew Proud's mismanagement, an ineffective Board and a drop in real estate transactions. While peers trade at above 18x EBITDA, the company's stock hovers around 8.5x EBITDA.

"The Board appears to have now authorized a reactionary sale process at the worst possible time and doubled down on its missteps. Instead of working to improve the business, waiting for the cycle to normalize and delivering the best outcome for shareholders, the Board seems more focused on evading accountability at the December 17th Annual Meeting.

"Since we suspect Mr. Proud will roll his equity in any transaction, a sale of Dye & Durham ( DYNDF ) would essentially allow him to buy the business at the bottom of the cycle for a price that would most likely substantially undervalue the company. It would be egregious for the same directors who have allowed Mr. Proud to destroy significant value to enable him to take advantage of the undervaluation he has caused by buying the company at a low price. Directors are supposed to protect shareholders' interests and maximize value -- not sell the Company on the cheap in a defensive maneuver, weeks before a shareholder meeting.

"Engine believes that over 50% of Dye & Durham's ( DYNDF ) shareholder base shares the view that now is not the right time to engage in a sale process."