Formation Group bosses plan buyout

THE bosses of a North West talent agency, which boasts Simon Cowell and Ant and Dec as clients, today confirmed they are in talks to take the business private.

Neil Rodford, chief executive of Formation Group, is understood to be leading a management buyout which is being backed by Gresham Private equity in a deal which could top the £25m mark.

Others in the consortium include DJ Peter Powell and former Manchester United player Kevin Moran.

Reports suggest that shareholder will be offered around 11p per share which is an 80% premium to Friday’s closing price of 6.5p.

The deal is understood to include five of the group’s seven subsidiaries including talent-management businesses James Grant and Proactive Sports Management, financial advisor OJ Kilkenny and Formation Sports Capital.
 
Reports say that the construction and asset-management businesses will remain in the listed company.

In a statement the group said: “Formation Group notes recent press speculation and confirms that the company has received indications of interest from Gresham Private Equity relating to certain parts of the Formation business.

“Discussions are ongoing and whilst there can be no guarantee that any agreement will be reached, the company has entered into a period of exclusivity with Gresham. No interest has been expressed in the company as a whole. A further announcement will be made in due course as required.”