A TV entrepreneur has confirmed he is taking back the reins of a £494m East Lancashire private sector business.
Matthew Riley, who heads up the Daisy Group, is leading a consortium to buy the company’s remaining 48.5 per cent private shareholding.
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One senior director at the Nelson-based communications company, which is valued at £494m, said the deal represented ‘good value’ for shareholders.
The move has also been welcomed by commentators in East Lancashire, who praised the ambition and growth of the business and said the deal should provide security for workers.
The consortium, made up of Toscafund, Penta Capital and Daisy Group’s chief executive, Matthew Riley, already own 51.5 per cent of the business and will pay 185p per share after lowering its offer from 190p.
Toscafund, one of London’s best known hedge funds has a 28.5 per cent stake while Mr Riley owns 23 per cent.
It has only been listed on the AIM, the London Stock Exchange’s international market for smaller growing companies, since 2009, but this latest move will see them return to being a private company with no share-holders.
Mr Riley, chief executive and a member of the consortium, said: “The offer provides Daisy shareholders with a cash premium today and represents a positive development for our 59,000 customers and contin-uity for our 1,500 employees.
“It also positions the company for its next phase of growth ."
Daisy Group provides telecommunication solutions by consolidating all voice, connectivity and mobile suppliers into one manageable point of contact.
Christina Kennedy, senior independent non-executive director at Daisy, added: “The independent directors believe that the offer represents good value and have therefore decided to recommend unanimously the consortium's offer to Daisy shareholders."
Peter Dubens, Daisy’s executive chairman, said the new share prices were 131.3 per cent higher than in the reverse takeover in 2009.
Details of the deal are still at an early stage and it is impossible to say if the takeover will create any new jobs.
Andrew Stephenson, MP for Pendle, said the deal really puts East Lancashire on the map.
He said: “The group is a fantastic example of a business that was started in Pendle by local lad Matthew Riley. It has gone from strength to strength and grown at a phenomenal pace.”
He added he hoped the acquisition would secure current jobs and that it could potentially create more employment in the area.
Mike Damms, chief executive of the East Lancashire Chamber of Commerce, said: “The company is a big employer in East Lancashire and we hope it continues to go from strength to strength.”
Coun Paul White, executive member for enterprise, growth and promotion in Pendle: "This is great news for one of Pendle's best known businessmen.
“It's one of Pendle's largest employers, and we're proud of them.
“Many people in Pendle and East Lancashire work at Daisy, and it will hopefully mean this is a reaffirmation of their commitment to the area.”
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