Buchanan quits Fusionex account amid fallout from IT group quitting AIM

PR agency Buchanan has quit its account with Fusionex after five years following a controversial move by the IT software group to go private.

Fusionex CEO Ivan Teh
Fusionex CEO Ivan Teh

The WPP-owned financial agency has given notice to resign and, according to The Times, insisted that its name did not appear on the statement announcing Fusionex’s move to cancel its listing on London Stock Exchange's AIM market.

The move, which requires the support of 75 per cent of shareholders at a meeting on 15 June, would see minority shareholders left with shares that could be difficult to sell close to the price at which they were purchased. Shares in Fusionex fell by around 58.5 per cent this morning to 53.5p.

This morning it was confirmed that the company's non-executive chairman John Croft has also given notice that he would resign. In addition, Fusionex said it had accepted the resignation of its joint broker Peel Hunt.

The Times has described Fusionex’s move to cancel its AIM listing as a backdoor attempt by founder and CEO Ivan Teh to seize control of the group. Teh currently owns 41 per cent of the company.

According to its website, Fuisionex provides analytics and data software to a range of clients including American Airlines, DHL, Ford, RBS and Shell.

In a statement released on Friday (26 May), Fusionex said its share price performance over the past 15 months had been "disappointing", while the "costs of remaining listed on AIM could be better spent within the business".

It is unclear when Buchanan will formerly end its relationship with Fusionex, having given its notice to resign. The agency has worked with the company since it debuted on AIM in 2012.

Buchanan declined to comment when contacted by PRWeek.

PRWeek left a message for Fusionex but had received no response at the time of publication.

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