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Daisy Group Recommending Lower 185P Per Share Offer From Consortium
[October 20, 2014]

Daisy Group Recommending Lower 185P Per Share Offer From Consortium


(Alliance News Via Acquire Media NewsEdge) LONDON (Alliance News) - Daisy Group PLC on Monday said it has recommended the lower cash offer made by a consortium led by its chief executive, in a deal that values the company at around GBP494 million.



Daisy on Friday said the bidding consortium, which comprises its Chief Executive Officer Matthew Riley, Toscafund Asset Management LLP and Penta Capital LLP, was considering lowering its bid for the company to 185 pence per share, from 190 pence per share.

The preliminary offer of 190 pence per share was made by the consortium in July and the two parties have been in talks since.


The lower offer of 185 pence per share has now been made and Daisy said it would recommend the deal to shareholders. It said the price represents a 16.4% premium to its closing price on July 25, the last day prior to the consortium's bid for Daisy. It is also a 5.7% premium to the closing price of Daisy shares on August 12, when the company entered preliminary talks with the consortium.

"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," said Riley.

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