Baker Tilly unlikely to pay anything for RSM Tenon shares

ACCOUNTANCY group RSM Tenon has admitted that shareholders could get nothing if the firm is bought by Baker Tilly.

In a stock market statement the group said “minimal value, if any” would be attributed to the shares because of its debts, which stood at £80m in April.

Baker Tilly said it was considering an offer for RSM Tenon at the end of July.

Since then the shares have halved in value from 3.5p to under 2p, giving the firm a market value of £6.2m. The shares were worth 62p at the end of 2010 but have been in steep decline ever since.

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.

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.

RSM Tenon said: “Discussions with Baker Tilly UK Holdings are continuing. However, it is now likely that, as a consequence of the Company’s high debt level, if an offer is made by Baker Tilly, minimal value, if any, will be attributed to the issued share capital of the company.

“Lloyds Banking Group continues to be supportive of the business as the company discusses with it ways to address its high level of borrowings.”

Under the Takeover Code Baker Tilly has until August 22 to make an offer.