The announcement that Daisy and Toscafund Asset Management are in advanced discussions over a possible takeover of Phoenix IT Group bear out comments made by Philip Carse, Principal Analyst at Megabuyte, when Daisy Chairman Matt Riley made moves towards taking Daisy private late last summer.
At the time Carse said: "One clue to what Daisy may seek to do if privately owned comes from the other UK comms holdings of its backers - Phoenix IT and Six Degrees. A combination of the three would create a £600m UK business comms and IT player, behind only BT and Vodafone/CWW."
In a statement today the board at Northampton-based Phoenix informed investors that it had been approached by Daisy and Toscafund with a recommended cash offer for the entire share capital of the company at a price of 160p per share.
Daisy has confirmed to the board of Phoenix that it has completed its due diligence and is well advanced with the finalisation of the necessary financing arrangements.
In accordance with rules on such matters Daisy must announce a firm intention to make an offer for Phoenix or announce that it does not intend to make an offer.
Daisy Group, which is headquartered at Nelson in Lancashire, is now in private hands after leaving the AIM growth market in January 2015.