Baker Tilly confirms RSM Tenon buy-out talks
ACCOUNTANCY group Baker Tilly has confirmed that it is considering an offer for rival firm RSM Tenon.
In a statement issued last night it said it was “reviewing the potential opportunity of making an offer for RSM Tenon”.
It added: “This review is not yet complete and there can be no certainty that an offer will be made for RSM Tenon nor as to the terms on which any offer may be made.”
There has been a wave of consolidation in the sector and a tie-up between the two regional firms would follow BDO and PKF’s merger in April.
Earlier yesterday RSM Tenon issued a stock market statement saying it was in discussions with Baker Tilly, “which may or may not lead to an offer being made for the entire issued share capital of the company”.
It added: “The company has been providing certain information to Baker Tilly to facilitate their investment evaluation process. Given the level of debt within the company, any potential transaction would require the support of its sole lender, Lloyds Banking Group. As a consequence, the board considers that, if an offer is made, it is likely to be at a level which is significantly below the current market price of the ordinary shares of the company.”
RSM Tenon acquired Bentley Jennison in 2009 but by last year it was stripping out costs after posting a pre-tax loss of £101m, largely due to exceptional items of £77m. In April it said debt stood at £80m. Its shares closed at 2.25p yesterday giving the group a value of £7.26m.
The business has shed around 500 staff and now employs some 2,600 and has North West offices in Bolton, Chorley, Manchester and Rochdale. Baker Tilly has offices in Manchester, Liverpool, Chester and Warrington. Under the Takeover Code it has until August 22 to make an offer.
