Daisy’s CEO Matthew Riley together with asset manager Toscafund and private equity firm Penta have been given 12 more days to formalise their £1.90 (US$3.18) per share offer to take over the British B2B telco.
The consortium made a preliminary…
Daisy’s CEO Matthew Riley together with asset manager Toscafund and private equity firm Penta have been given 12 more days to formalise their £1.90 (US$3.18) per share offer to take over the British B2B telco.
The consortium made a preliminary approach in late July – which valued Daisy at £507m (US$817m) – and under UK takeover law had until today to make a firm intention to bid.
However, Riley and the investors asked Daisy’s independent directors to extend the time period to allow them to complete due diligence on the target. Daisy’s directors then sought and received approval from the UK’s Panel on Takeovers and Mergers for the request. The regulator extended the deadline for a firm bid to 22 September.
Riley, who has led the AIM-listed telco since founding it in 1991, already has a stake of roughly 23%, while Toscafund holds about 28.5%.
Penta sold its UK B2B telco SpiriTel to Daisy back in 2010 for £27m (US$45m). SpiriTel, like Daisy, was a growth vehicle that rapidly gained scale by consolidating the country’s fragmented reseller marketplace.
It was reported earlier this year that Daisy had attracted the interest of John Malone’s cable giant Liberty Global, which held talks over a takeover deal worth at least £500m (US$841m). However, negotiations fell apart because Daisy was reported to want a further £100m (US$168m).
Liberum is Daisy’s nominated adviser, and is also advising on the UK takeover code. Oakley Capital is its financial adviser. Toscafund listed JP Morgan for enquiries.
Daisy’s shares are currently trading at £1.85 and the telco has a market capitalisation of £495m.
