Connectivity kit designer Telit Communications (TCM:AIM) is locked in sale talks, according to stock market speculation.

Several private equity firms are mooted to be interested, as is China-based 14% stake owner Run Liang Tai Management.

In October the company revealed it was mulling the possible sale of automotive products division, whose customers includes Tesla.

That plan now seems to have expanded to include the entire company, according to the latest City gossip.

WHAT'S GONE WRONG?

Telit has been beset with problems this year, missing forecasts and cutting guidance for revenue and earnings before interest, tax, depreciation and amortisation (EBITDA).

The year has also seen chief executive Oozi Cats leave after he was caught up in fraud claims, although they were from years ago and had nothing to do with Telit.

The negative issues resulted in a massive share price plunge from April highs of 372.75p to the current 194p. The stock had fallen as low as 103.75p in August.

TCM

Earlier in November the company confirmed that it was working with the Financial Conduct Authority to answer ‘enquiries’ made by the watchdog.

Since then much management soul searching and operational rethinking has gone on.

Telit has now confirmed it is trying to tempt former boss of gambling firm 888 (888) Richard Kilsby to become the company's chairman.

 


Issue Date: 13 Nov 2017