Following the ambiguity this week relating to the proposed transaction between CFH Group and Boston Technologies, CFH Group has confirmed its purchase (pending final due diligence) of Class B stocks with voting rights in Boston Technologies Inc. and ordinary shares in BT Trading Ltd (parent company of Boston Prime Ltd) from Kevin Millien.
The CFH statement rejected several facets of Boston Technology’s statement, namely that
– the stake they acquired from Kevin Millien does indeed come with voting rights, although they represent just under 50% of the company
– they expect to exert influence on the company.
The corporate statement which was issued today by CFH goes as follows:
Statement from Christian Frahm, CEO of CFH Group
CFH Group confirms its purchase (pending final due diligence) of Class B stocks with voting rights in Boston Technologies Inc. and ordinary shares in BT Trading Ltd (parent company of Boston Prime Ltd) from Kevin Millien. According to all the information we have received, this represents 50% of the voting stock in both companies. However, due to the case settlement between Kevin Millien and George Popescu in Boston Technologies, we acknowledge the outcome of the case resulted in Kevin Millien’s stake only representing one share fewer, and as such does not represent a controlling stake.
It must also be stressed that it is a fiduciary responsibility of the management team to act in the interest of all shareholders. As a major shareholder, we would therefore expect to have influence on the future direction of the company.
We believe this deal creates a great opportunity for both CFH Group and Boston Technologies. We are in dialogue with the management of Boston Technologies about further ways of working together which we believe would be in the best interest of all shareholders and the company.