AIM float fiasco fuels 5m CardCall sell-off
National Lottery branded phone card supplier CardCall is negotiating to sell a controlling interest in the business, worth an estimated 5m, to telecoms company MTT.
The deal, which involves the purchase of 51 per cent of the company, could lead to a possible conflict of interest. Former Tory cabinet minister Sir Kenneth Baker is a non-executive director of MTT, while his wife, Mary Baker, is a non-executive director of National Lottery operator Camelot and chair- woman of its charity, the Camelot Foundation.
CardCall founder Michael Zwebner has been in talks with MTT chief executive Eddie Ishag over the purchase of the company. MTT is understood to be keen to take over the Lottery ANYphone franchise, along with a distribution agreement through WH Smith’s D Services, which goes to 50,000 newsagents.
CardCall failed in its plans to go public this year when it was forced to delay its 12.5m flotation on the Alternative Investment Market after the 2.5m public offer was only a little over half subscribed in October.
It was also forced to delay the bulk of its pre-Christmas promotion, devised by Team Saatchi and worth almost 1m, until next year because of its failure to raise money. CardCall chairman Maurice Alberge is understood to have quit the company recently.
CardCall is also understood to be linked to Camelot consortium member G-Tech.