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Colt Shareholders Jump Ship

Stock Market

In a statement to the City today Colt shareholders have approved a 190 pence per share offer from private equity firm Fidelity which was offered back in June.

At the time there was some serious chin wobbling going on as directors at the firm felt the offer was “not fair” and undervalued the company. Shareholders clearly disagreed. The offer values Colt at £1.73bn.

The resolutions which were proposed in connection with the Offer were passed by shareholders of Colt at the Extraordinary General Meeting held yesterday.

The announcement made by Fidelity that Bidco had received valid acceptances in respect of 246,514,330 Colt Shares, approximately 27.5% of the entire issued share capital of Colt. This brings the total Fidelity holding in Colt to 89.9%

The city report stated “The independent directors of Colt note that the Offer has been declared wholly unconditional”

“Fidelity has announced that it will procure that Colt will make a request to the UK Listing Authority and to the LSE for the cancellation of the listing.”

Colt reported in July that it was “focusing on its core services” and that it’s IT services wing didn’t come under “core” activities. Colt IT Services revenue declined by 2.4% in 2014 to €77.8m (2013: €79.7m).

2014 financial results included Group revenue declined 5.1% due largely to a reduction in Voice associated with proactive withdrawal from low margin carrier voice trading contracts, and regulatory price declines. Operating profit before exceptional items decreased from €39.4m to €21.0m.