Riley consortium reaches a deal for Daisy
Mon, 20th October 2014

Riley consortium reaches a deal for Daisy

A group led by Daisy chief executive Matthew Riley has reached an agreement to buy the Lancashire IT company and take it private, in a deal which values the business at almost £500m.

Riley, along with Toscafund Asset Management and Penta Capital, first made an approach to buy the Nelson-headquartered group earlier this year.

The consortium has now reached an agreement with independent directors to purchase the group for 185p per share – which values Daisy at about £494m.

The offer is conditional upon the group receiving acceptances from 90 per cent of shareholders.

If approved by shareholders, the consortium will seek to cancel trading on the stock exchange and re-register Daisy as a private limited company.

Christina Kennedy, senior independent non-executive director of Daisy, said: "I am pleased that we have reached agreement on the terms of an offer that represents a good outcome for Daisy Shareholders and enables them to exit at a premium for cash.

"The independent directors believe that the offer represents good value and an attractive balance between the future opportunities and risks facing the business and have therefore decided to recommend unanimously the consortium's offer to Daisy shareholders."

Matthew Riley, chief executive of Daisy, said: "The company has enjoyed loyal support from its shareholders over the five years it has been quoted on AIM.

"The offer provides Daisy Shareholders with a cash premium today and represents a positive development for our 59,000 customers and continuity for our 1,500 employees; it also positions the company for its next phase of growth in the UK telecoms and IT sector, with the backing and strategic and financial guidance of Toscafund and Penta."

JP Morgan Cazenove is financial adviser for the consortium. Liberum is nominated adviser and corporate broker to Daisy and Oakley Capital Corporate Finance is financial adviser to Daisy.

category North West  |  source Insider Media