Betaville

RARE ALERT: Telit Communications said to ... - Part 43

Today may be Telit Communications final day as a public company but that doesn't mean Betaville has given up on reporting on the business.

Indeed, this website can reveal that Oozi Cats, the founder of Telit Communications, has written to the company’s chairman to make several formal complaints about the £305 million takeover of the Aim-listed 'internet of things' business by private equity firm Dbay Advisors.

People following the situation said Oozi Cats, who was chief executive of Telit until 2017, has sent a letter to Telit’s chairman Simon Duffy, the former vice chairman of Virgin Media Group, outlining several concerns about Dbay’s takeover bid.

The formal complaint from Cats comes as the court last week sanctioned the Dbay Scheme of Arrangement to de-list the company.

Cats set up Telit 21 years ago and stands to make around £40 million from the sale of the company to Dbay as he still owns around 12pc of the business.

However, people following the situation said the entrepreneur is said to be extremely unhappy with the way Telit’s board behaved during the sale process to Dbay and was demanding the company reveals up-to-date financial figures ahead of its de-listing.

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.

Eventually the Isle of Man-based firm agreed a deal with the Telit’s board to pay 229.5p a share for business, which values the company at around £305 million...