Attracting alternative investors is behind Rethink Group’s potential AIM de-listing
13 November 2014
International talent management and recruitment services provider Rethink Group’s strategic plan and need for alternative investment is behind the company’s bid to de-list from the London Alternative Investment Market (AIM).
Thu, 13 Nov 2014
International talent management and recruitment services provider Rethink Group’s strategic plan and need for alternative investment is behind the company’s bid to de-list from the London Alternative Investment Market (AIM).
Speaking to Recruiter yesterday (12 November), company chief executive Steve Wright said an entity had to be “big enough to be on the radar” to attract investment from institutional shareholders.
“There’s a view that you have to have a market capitalisation of £50m [Rethink’s is £5.38m, according to its website] to be able to attract those institutional investors.”
Without those investors, he continued, “it’s difficult to raise funds for acquisitions and expansions”.
Therefore, the company cannot deliver on its strategic plan, which includes further development of talent management services and client relationships.
According to its annual report, the “most attractive growth opportunities” are in talent management services, marking a “change of emphasis” for the company.
An objective of its 2013 three-year strategic plan was to have 60% of the group’s performance derived from talent management services and the remaining 40% from recruitment.
Wright said in order to do that, it was decided that a different kind of investor was needed; a type that “will look at the company and it’s potential and is prepared to invest smaller amounts to get business moving”.
The move to de-list must be approved by 75% of shareholders.
A vote will take place on 26 November with shareholders representing about 72.7% of the ordinary shares in issue already agreeing to vote in favour.
As Recruiter reported on Monday, if approved, the de-listing is expected to become effective on 9 December and re-registration of the company as a private limited company would then take effect on 29 December.
International talent management and recruitment services provider Rethink Group’s strategic plan and need for alternative investment is behind the company’s bid to de-list from the London Alternative Investment Market (AIM).
Speaking to Recruiter yesterday (12 November), company chief executive Steve Wright said an entity had to be “big enough to be on the radar” to attract investment from institutional shareholders.
“There’s a view that you have to have a market capitalisation of £50m [Rethink’s is £5.38m, according to its website] to be able to attract those institutional investors.”
Without those investors, he continued, “it’s difficult to raise funds for acquisitions and expansions”.
Therefore, the company cannot deliver on its strategic plan, which includes further development of talent management services and client relationships.
According to its annual report, the “most attractive growth opportunities” are in talent management services, marking a “change of emphasis” for the company.
An objective of its 2013 three-year strategic plan was to have 60% of the group’s performance derived from talent management services and the remaining 40% from recruitment.
Wright said in order to do that, it was decided that a different kind of investor was needed; a type that “will look at the company and it’s potential and is prepared to invest smaller amounts to get business moving”.
The move to de-list must be approved by 75% of shareholders.
A vote will take place on 26 November with shareholders representing about 72.7% of the ordinary shares in issue already agreeing to vote in favour.
As Recruiter reported on Monday, if approved, the de-listing is expected to become effective on 9 December and re-registration of the company as a private limited company would then take effect on 29 December.
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