Telit Communications says not being formally investigated by FCA

AIM-listed Internet-of-Things enabler Telit Communications acknowledged press speculation on Thursday that the Financial Conduct Authority is conducting an investigation into the company, insisting it is not under formal investigation.

Telit said it wrote to the City watchdog in August requesting that it look into various matters which were of concern to the group. It then received a letter from the FCA in response and raising preliminary enquiries.

"Telit has been informed by the FCA that it is not under formal investigation."

The company added that it will cooperate fully with the FCA with regards to its confidential enquiries and is currently addressing the matters which the FCA raised.

Earlier, Sky News reported that the investigation was expected to include an examination of the timing and disclosures relating to a share sale in May by former chief executive Oozi Cats. That sale was carried out by investment bank Berenberg, which is joint broker to Telit, and Sky said it was understood that subsequent share transactions are also attracting the scrutiny of regulators.

At 1240 BST, the shares were down 7.1% to 161.14p.