Telit Communications to Delist After £305m Takeover by DBAY Advisors

Sep 5, 2021 | News

Telit Communications PLC said Tuesday that its shares will be delisted from the London Stock Exchange on Wednesday after its takeover by DBAY Advisors Ltd. becomes effective.

The asset-management firm is being taken over at 229.5 pence (315.8 cents) a share, raised from a bid of 220 pence a share on July 30.

The founder, Oozi Cats, stands to make around £40m from the sale of the company to Dbay as he still owns around 12% of the business. However, the entrepreneur is said to be extremely unhappy with the way Telit’s board behaved during the sale process to Dbay and demanded the company reveals up-to-date financial figures.

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Cats is also worried about what will happen to the company after it has been acquired by Dbay, suggesting Telit may have to take on a huge amount of loans from financial institutions to pay for Dbay’s short-term debt that is being used to take the company private. Dbay, which two years ago took control of Eddie Stobart Logistics, has been in talks about buying Telit since late last year.

Cats has now written to the company’s chairman to issue several formal complaints about the £305million takeover of the AIM-listed ‘internet of things’ business by private equity firm Dbay Advisors.

Source: Today UK News

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