Big Technologies vows robust defence to Buddi acquisition allegations

29th Jan 2024 11:43

(Sharecast News) - Big Technologies responded to fresh press speculation on Monday, as it grappled with a legal battle in response to claims made by former shareholders of Buddi.

The dispute, filed in the High Court of England on 2 August last year and amended on 22 November, involved shareholders representing 6% of Buddi's share capital in May 2018, including Philippa D'Arcy, Michael and Rhian-Anwen Hamill, Mark Hawtin, and Brian Maclaurin.

According to an article published in the Times on Monday morning, the allegation centred on chief executive officer Sara Murray's alleged use of undisclosed offshore entities to force the sale of investors' shares during Big Technologies' acquisition of Buddi in 2018, resulting in substantial financial losses for the shareholders.

In its response, Big Technologies denied the claims, asserting they lacked legal and factual merit as it promised a robust defence.

The company also refuted any alleged wrongdoing by its executives.

Key points of contention included the involvement of offshore companies, which the Times said were named as significant shareholders during Big Technologies' 2021 listing on AIM market but allegedly had undisclosed ties to Sara Murray.

The claimants argued that a "drag-along" clause was improperly used, with certain shareholders receiving preferential treatment.

They also alleged that Murray held undisclosed interests via offshore entities, effectively controlling 58% of the company, surpassing the 75% voting threshold needed for the sale.

Big Technologies maintained the validity of the "drag-along" clause, and refuted allegations of false statements.

The claimants were seeking a court-ordered purchase of their Buddi shares at a court-determined price.

At 1347 GMT, shares in Big Technologies were up 3.63% at 128.5p.

Reporting by Josh White for Sharecast.com.