Arkhouse Management Discloses 4.3% Stake in Dine Brands Global

Arkhouse Management Co. LP reported holding 546,700 shares of Dine Brands Global, Inc., or 4.3% of the common stock, after it and another investor made a non-binding offer for the company, according to a Schedule 13D filed Nov. 2 with the US Securities and Exchange Commission.

On Oct. 26, Arkhouse and Cobblers Cove Capital LP delivered to the Dine Brands board a non-binding proposal to acquire all of the outstanding shares of common stock for $39.00 per share in cash, the filing says. Arkhouse Management and Cobblers Cove received a letter from the board dated Oct. 29 stating that it had rejected the proposal, according to the filing.

In a Nov. 2 letter to the board, Arkhouse and Cobblers Cove expressed disappointment "that the Board rejected [their] proposal without engaging with [them]" and a continued eagerness to work with the company toward a potential transaction, the filing says.

Funds and separately managed accounts managed by Arkhouse Management have also entered into cash-settled total return swaps referencing 1,711,286 Dine Brands shares, the filing shows. Together with the reported shares, the swaps give the reporting persons economic exposure to approximately 17.8% of the common stock, according to the filing. The filing says Arkhouse and Cobblers Cove may be deemed a group whose combined holdings would represent approximately 5.7% of the shares, and Arkhouse disclaims beneficial ownership of the Cobblers Cove shares.

The filing is made jointly with Arkhouse GP LLC, Arkhouse Value Fund GP X LLC, Arkhouse Value Fund GP II LLC and Gavriel Kahane, whom the filing describes as managing partner of Arkhouse Management.