15 Jun 2015 07:00
Management Resource Solutions PLC
Further update on acquisition of the D&M Group
Management Resource Solutions plc ("MRS" or the "Company") wishes to provide shareholders with a further update on the proposed acquisition of the D&M Group (the "Proposed Acquisition").
The Share Sale Agreement ("SSA") entered into with the vendors of the D&M Group ("Vendors") on 4 March 2015 required all conditions, including shareholder consent and payment of the consideration, to be met by 31 March 2015. In light of the difficulties securing funds from Halcyon Capital Management Pty Ltd ("Halcyon"), the Vendors agreed to extend the end date for satisfaction of these conditions on a rolling basis whilst attempts were made by the Company to secure the funds to complete the Proposed Acquisition from either Halcyon or an alternative lender.
It is with regret that the directors of MRS now have to inform shareholders that at close of business on 12 June 2015 they were notified that the Vendors no longer wished to pursue negotiations and accordingly the Proposed Acquisition will not be proceeding.
The directors maintain that the D&M Group would make an attractive addition to MRS but accept the notice given by the Vendors. The transaction process and the ramifications of Halcyon's default have impacted the financial performance of the existing MRS business for the year ending 30 June 2015 and the Company will provide shareholders with an update in this regard following the year end.
The Company's ordinary shares have been suspended from trading on AIM since 8 April 2015 when it first became apparent that Halcyon may not be able to deliver on its contractual funding. In light of the termination of the SSA, the Halcyon funding is no longer required and application has been made for the Company's ordinary shares to be restored to trading on AIM with effect from 0730 today.
For further information:
Management Resource Solutions PLC Paul Morffew, Chief Executive Timothy Jones, Finance Director | c/o FTI +44 (0)20 3727 1000 |
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Northland Capital Partners Limited (Nominated Adviser and Broker) William Vandyk David Hignell | +44 (0)20 7382 1100 |
FTI Consulting Edward Westropp Oliver Winters Adam Cubbage
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+44 (0)20 3727 1000 |
About MRS
MRS provides project, quality, environmental and health & safety management services to some of the largest companies and projects across Australia, Oceania and Southeast Asia. MRS are sector specialists in the construction, engineering, civil engineering, petrochemical and coal seam gas sectors. MRS sources its contractors from a database of over 23,000 professionals around the globe, allowing it to react quickly and fully to client requirements.