THE former chairman of East Lancashire telecoms group Daisy Peter Dubens has spent £39 million buying a share of the booming Nelson company.

The investment, by his private equity firm Oakley Capital, comes less than a year after he supported a £494 million takeover of the business.

It has pumped the £39 million into the now private company through buying a minority stake following Daisy’s purchase of rival IT services firm Phoenix.

The investment is less than the £65 million Oakley received from cashing out when Daisy was taken private by the telecoms group’s founder Matthew Riley with Toscafund and Penta Capital last year.

Mr Dubens’ Oakley owned 13.6 per cent telecoms firm that he had also chaired.

Pendle Tory MP Andrew Stephenson said: “Daisy is a major local employer and a key part of the East Lancashire economy.

“For Mr Dubens to spend some of his own company’s money in the firm he used to chair is a major vote of confidence in Daisy and its future prospects.”

Mr Dubens revealed he had bought the stake from Mr Riley and Toscafund while Oakley had also provided a £14 million loan to Daisy Group.

He said: “We are delighted to be acquiring a stake in Daisy.

“It is a business we know well and one that has created very significant value for Oakley in the past.

“We look forward to working with our fellow shareholders and the management team to generate further growth and value over the coming years .”