Riley and investors make Daisy takeover approach
MATTHEW Riley, the award winning entrepreneur and founder of Lancashire business communication and IT services provider Daisy Group, has teamed up with other investors to make an approach to buy the company.
In a statement Daisy Group said Mr Riley, who is working in a consortium with institutional investors Toscafund Asset Management and Penta Capital, said there had been an approach from Toscafund on July 27 on behalf of the consortium regarding a cash offer at 190p per share.
Shares in Daisy Group, which has its HQ in Nelson, closed at 175p on Tuesday. At that price the business has a market value of £467.54m. The stock rose 7% to 187p on the news.
The company 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 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.”
The consortium confirmed in its own statement that it is “at a preliminary stage of considering a possible cash offer” for Daisy, adding : “There is no certainty that any offer will be made nor of the level of consideration which might be attached to any such offer.”
The consortium said entities advised by Toscafund hold shares representing approximately 28.5% of Daisy, while chief executive Matthew Riley holds 23% of the company’s shares.
“A further announcement will be made as appropriate,” it added.
Mr Riley who has appeared as one of Lord Sugar’s expert advisers on The Apprentice, founded Daisy in his garage in 1991.
The Times reported that Virgin Media and Vodafone have both run the rule over Daisy in the last year, but had opted not to make an offer at around 200p per share.
