Management Resource Solutions PLC Acquisition Update (0229O)
May 22 2015 - 2:09AM
UK Regulatory
TIDMMRS
RNS Number : 0229O
Management Resource Solutions PLC
22 May 2015
Management Resource Solutions PLC
Further update on acquisition of the D&M Group
Management Resource Solutions plc ("MRS" or "Company") wishes to
provide shareholders with a further update on the acquisition of
the D&M Group ("the Acquisition").
As previously announced, the source of funds for the
Acquisition, Halcyon Capital Management Pty Ltd ("Halcyon"),
defaulted on its contracted obligations and since then the
directors of MRS have been working to secure alternative funding.
The Company is pleased to announce that they have now received the
first replacement offer of debt financing and anticipate receiving
further competitive proposals within the next week. The lending
proposal, from an established Australian bank, is subject to a
number of pre-conditions and the entering into of definitive
agreements but it is anticipated that MRS will be capable of
drawing funds to complete the Acquisition by the first week of
July.
The facility under negotiation is significantly less than that
contracted from Halcyon, reflecting the lower level of equipment
financing to be replaced, significantly reduced transaction costs
and a smaller ongoing working capital facility. In addition, the
Company and vendors have agreed in principle to revise the
consideration structure so that, subject to final negotiation,
approximately 52 per cent. of the purchase price will be paid in
cash upon completion, amounting to A$4m, with the balance deferred
for up to 3 years. As a result the net working capital position of
the Company following completion of the Acquisition should be
improved from the terms announced on 4 March 2015.
A further announcement detailing the revisions to the
consideration payable for the Acquisition and the borrowing to be
undertaken will be made once these have been finalised.
The Company also announces that in light of its focus on
completing the acquisition of D&M it has not yet been in a
position to identify new directors and accordingly Murray d'Almeida
has agreed to defer his retirement and remain in his position as
non-executive chairman of the Company for the immediate future. A
further announcement will be made regarding the composition of the
board of directors once further appointments have been agreed.
For further information:
Management Resource Solutions PLC c/o FTI +44 (0)20
Paul Morffew, Chief Executive 3727 1000
Timothy Jones, Finance Director
Northland Capital Partners Limited
(Nominated Adviser and Broker)
William Vandyk +44 (0)20 7382
David Hignell 1100
FTI Consulting
Edward Westropp
Oliver Winters +44 (0)20 3727
Adam Cubbage 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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