Milton Capital lines up reverse takeover by phone maker Apostrophy
What's the deal? London-listed cash shell Milton CapitalDealroom has a profile for this one. Try Dealroom → has signed a non-binding term sheet and exclusivity agreement with Swiss technology company Apostrophy AGDealroom has a profile for this one. Try Dealroom → to pursue a share purchase agreement. The deal would take Apostrophy public through Milton, whose shares are suspended under the Financial Conduct Authority's UK Listing Rules.
Who's involved? Apostrophy is partly owned by technology entrepreneur Petter Neby, who wholly owns related company Punkt Tronics AGDealroom has a profile for this one. Try Dealroom →. Before completion, Apostrophy is expected to acquire Punkt's telephony assets.
Why now? As a cash shell, Milton exists to find an acquisition target. A reverse takeover offers Apostrophy a route to a public listing without a traditional flotation.
What's the endgame? Milton chair Richard Mays called the approach "the stand-out opportunity," describing Apostrophy as "an established business and team, a technology business with a global reach." He said he is confident shareholders "will want to be part of this exceptional business as it looks to go public and accelerate its growth plans."
What could go wrong? The term sheet is non-binding, and no share purchase agreement has yet been signed. Completion also depends on Apostrophy first absorbing Punkt's telephony assets, leaving room for the deal to stall.
The signal: The transaction shows how cash shells continue to serve as back doors to public markets for smaller technology firms, sidestepping the cost and disclosure of a conventional IPO.
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