The controversial founder of Telit Communications is threatening to scupper a £300million private equity-led takeover of the AIM-listed internet chip business he founded 21 years ago.
Oozi Cats, who hit the headlines in 2017 amid allegations that led to his departure as chief executive of Telit, told The Mail on Sunday that he will not vote for private equity firm Dbay’s £2.20-a-share offer.
Shareholders are expected to vote next week. If approved, the bid would lead to Telit being sold to Dbay – its largest shareholder with a 26 per cent stake.
Battle: If approved, the bid would lead to Telit being sold to Dbay – its largest shareholder with a 26 per cent stake
Cats owns 12 per cent of Telit, so he stands to make £40million from a takeover.
However, speaking publicly for the first time since leaving the company, he said: ‘I will be voting against the Dbay [takeover] proposal and will be advising my fellow shareholders to do the same.’
When he left Telit in 2017, the shares were trading around £3.70.
Cats said: ‘In August 2017, Telit and myself personally went under a vicious attack from short sellers. This sad event has propelled one of the best UK-listed technology companies into the hands of an opportunistic group that is now trying to take Telit private at half price.’
He added: ‘I am extremely disappointed with the board’s decision to recommend Dbay’s offer.’
Switzerland’s u-blox and US-listed Lantronix both approached Telit last year, but failed to agree a deal.
On Friday, Telit’s shares closed at £2.25, suggesting investors expect a rival bidder to emerge.
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