UK B2B internet and telecoms provider Daisy Group has received a preliminary approach about a potential £1.85 (US$2.98) per share takeover offer from a consortium made up of Toscafund Asset Management, Penta Capital and its own CEO Matthew Riley.
The…
UK B2B internet and telecoms provider Daisy Group has received a preliminary approach about a potential £1.85 (US$2.98) per share takeover offer from a consortium made up of Toscafund Asset Management, Penta Capital and its own CEO Matthew Riley.
The consortium had contacted it about a possible £1.90 per share offer in August. Daisy said in a statement today that its independent directors are considering the revised terms of the new potential cash offer.
Under UK takeover law, the consortium initially had until 10 September to make a binding offer, but the deadline has been extended several times. The latest extension, which the consortium requested to “consider and finalise certain aspects of its proposal”, has given it until 20 October to formalise its offer or walk away. Daisy noted that a further extension may be granted with its consent.
The revised offer values AIM-listed Daisy at about £494m (US$794.8m), while the initial approach had valued it at £507m (US$817m). The company has a market cap of £412.95m (US$664.4m) and its shares went up 11% to £1.72 (US$2.77) per share when trading opened today.
Riley, who has led Daisy since founding it in 1991, already has a stake of about 23%, while Toscafund holds about 28.5%.
Penta sold its UK B2B telco SpiriTel to Daisy back in 2010 for £27m (US$45m).
The consortium is receiving financial advice on the potential deal from JP Morgan. Daisy’s financial adviser is Oakley Capital and its nominated adviser, Liberum, is also providing advice on the UK takeover code.
Daisy, which provides hosting, broadband internet and voice services, reported revenues of £352.68m for the year ended 31 March 2014 and an operating loss of £17.86m.
