Work Group acquisition still on the cards

A potential acquisition by recruitment services organisation Work Group is still underway, the company announced today.

The proposed acquisition by Work Group of another group of companies in the business services sector would constitute a ‘reverse takeover’ under AIM rules, the company has said. The group’s board had previously concluded that the company’s trading activities could only survive as part of a larger organisation.

The Work Group announced in December that it had entered into an agreement for the potential acquisition. Today’s statement said that advisers seek to complete the deal as soon as possible, subject to shareholder approval, but emphasised there was “no guarantee” that the acquisition would go ahead until binding terms were agreed.

According to a statement released by Work Group last August, the takeover was mooted as a response to an “extremely difficult” 2015 for the company. In December that year, outsourcing firm Capita bought several aspects of Work Group’s business, including its consultancy and resourcing operations in a trade and assets deal.

Work Group was asked for comment but Recruiter had received no reply at time of press.

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