Matt Riley makes cash offer for Daisy
Entrepreneur Matthew Riley has made a cash offer for the Daisy Group that would take the company private and set its value at £494m.The chief executive stated his intention to make a bid earlier in the year as part of a consortium with Toscafund Asset Management and Penta Capital.
The confirmed offer is for 185p per share, which is above the trading price of 159p but below the initial suggested price of 190p.The proposed deal has been agreed by the firm's major shareholders, representing 93% of the shares.
Entities advised by Toscafund hold 28.5% of Daisy, while Mr Riley has 23%. Four funds which hold a further 40% have also given undertakings to accept the offer.The deal is being part-funded by a £265m loan agreed with a syndicate of banks including HSBC, Lloyds, ING Bank. There is also a £130m payment-in-kind loan from Ares Capital. PIK loans are usually an expensive form of finance that do not allow for any repayment until they mature.
Daisy chairman Peter Dubens said: "I would like to thank Matthew Riley and the management team of Daisy for their skill and hard work in implementing an acquisition-led strategy which has delivered shareholders 185p per Daisy share compared to the placing price in the 2009 reverse takeover of 80p per Daisy Share, an increase of 131.3%. When compared with the increase in the FTSE AIM All Share index of 27.5%. since admission, I believe that this represents a good outcome for all Daisy shareholders." Matthew Riley 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."