Telecoms provider Daisy Group plc, which operates a Prudhoe base, has revealed it is in takeover talks with a consortium of large shareholders led by its chief executive officer.
In a note to shareholders this week the national provider said it was in talks with a consortium comprising Toscafund Asset Management LLP, Penta Capital LLP and Matthew Riley, Daisy’s chief executive officer.
The aim-listed firm said Toscafund had approached it on behalf of the consortium with a cash offer of 190p per Daisy share, which on Wednesday gave the firm a market valuation of roughly £470m.
A statement from Daisy said: “An independent committee of the Board has been convened who are engaged in preliminary discussions with the Consortium and further announcements will be made as appropriate.
“This announcement is not an announcement of a firm intention to make an offer under Rule 2.7 of the Code and, accordingly, there can be no certainty of an offer being made for Daisy by Toscafund, Penta and/or Matthew Riley, nor as to the terms of any offer. This announcement is made without the Consortium’s consent.”
Mr Riley founded Daisy Communications Ltd (DCL), the largest company in the Group, in 1991, and currently controls a 23% stake in the business.
Prior to founding DCL he established and sold three start-up companies.
Toscafund holds a 28.5% stake in Daisy Group.
The consortium must now announce a firm intention to make an offer for Daisy no later than 5pm on September 10, 2014.