Market report: Malaysian tycoon’s scheme crunches Fusionex’s value

The fallout from Fusionex took its toll on small investors today after the IT software firm revealed its Malaysian founder’s plans to take it private.

The AIM-listed outfit, which allows customers such as Ford and Aviva to process huge amounts of data, delivered the unwelcome message on Friday evening after the market shut.

Fusionex said its share price had not reflected its performance, and argued that the costs of its AIM listing could be “better spent within the business”.

The vote on cancelling its shares from London’s junior market takes place in Malaysia on June 15, leaving disgruntled UK-based investors little time to block the move by Ivan Teh.

The Malaysian entrepreneur owns more than 40% of the group and needs 75% approval at the meeting which he is likely to get from his colleagues. The likely low turn-out will also help.

Peel Hunt, its joint broker, quit last week, as did PR firm Buchanan. Today, chairman John Croft also resigned.

Fusionex’s shares crashed 79p, or 61%, today to 50p, valuing the former AIM darling at less than £30 million.

The FTSE 100 also started the week in the red after the Bank Holiday break, although falls were less dramatic as it slid 35.72 points to 7511.91, still close to record highs.

Miners including Antofagasta, down 9p to 815.5p, dragged the index lower after falls from commodities prices.

A weaker rand hurt firms with operation in South Africa such as private hospitals group Mediclinic, off 29p at 787p, and wealth management firm Old Mutual, 2.5p cheaper at 194.1p.