Daily Mail

Computer meltdown cost £80m, admits BA Anger as tycoon snatches back tech firm from investors

- by Matt Oliver

A TECH entreprene­ur who claimed his company was an ambassador for Asian firms has snatched it back from investors after the firm saw its value plunge by £116m.

After listing in London five years ago, Fusionex chief executive Ivan Teh said the software firm had a responsibi­lity to protect the reputation of others who might follow suit.

But yesterday the 41-year- old seized control of the Malaysian business by the back door, with a vote to delist it from the Alternativ­e Investment Market.

The controvers­ial plan has dismayed minority shareholde­rs who could be left nursing huge losses on investment­s. Fusionex’s spin doctors, broker and chairman have all walked out in protest.

Teh has a 41pc stake, and won support from allies, including apparent family members.

The resolution to allow him to take back the company was passed by 85pc.

Since the plan was unveiled in May, it has sent Fusionex’s share price tumbling from 129p to about 35.5p, wiping £14m off its value.

Minority shareholde­rs who could lose out include the West Yorkshire Pension Fund – for firefighte­rs and council workers, among others – which has a 2.8pc stake and Credit Suisse, which has a 3.6pc stake.

one of the City’s top investment groups, Standard Life, condemned the vote. Head of governance Euan Stirling said: ‘It feels like the company has been taken from us without our consent. I don’t think this has done the credibilit­y of markets any favours at all.’

In a letter from the company, shareholde­rs were told the move ‘should not be misinterpr­eted as a sign of weakness’ and that Fusionex’s future remained positive.

The proposal led to Pr agency Buchanan walking out. Account director Steph Watson said yesterday: ‘The [de-listing] was not in the interests of shareholde­rs and therefore we did not support it.’ Former chairman John Croft also resigned last month and broker Peel Hunt quit over ‘major disagreeme­nts’.

It comes after Teh’s business was hailed as ‘ a success story’ in the Asia Pacific Entreprene­urship Awards in 2014. At the time the boss said of his company’s flotation: ‘Taking all that money comes with a sense of responsibi­lity. You have to do something in return.’

of the delisting, Teh said: ‘I appreciate that the proposal did not sit favourably with every single shareholde­r, but I am confident that the future will demonstrat­e that the move will unlock the true value of Fusionex.’

Computer software firm launched in 2006 by chief executive Ivan Teh, who claimed to have worked 18-hour days to get it off the ground

In December 2012 he floated Fusionex in the UK - demand for shares was 300 times more than those available

It was worth £117m in February 2014. By May this year it was worth £21m

Shares have faller further and the firm is now worth just £5m

Investors are told shares had been ‘disappoint­ing’ and ‘undervalue­d’ and Teh decides to take back the firm

 ??  ?? Condemnati­on: Fusionex founder Ivan Teh
Condemnati­on: Fusionex founder Ivan Teh

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