December 11 2013 Latest news:
Thursday, August 22, 2013
The trading businesses of accountancy and consultancy group RSM Tenon have been acquired by Baker Tilly following the appointment of administrators at the group’s parent company.
RSM Tenon Group plc announced last month that it was in talks with Baker Tilly over a potential offer for the company but in a statement today, the group said these discusssion had now ended.
It added that, with its bank, Lloyds, having indicated that it would not be willing to grant a waiver in the event of the group breaching its banking covenant, the board had called in insolvency practiioners from Deloitte as joint administrators.
“RSM Tenon Limited and the other principal trading entities continue to trade as normal and are not affected by this,” the statement added.
“Immediately following their appointment, the joint administrators agreed a sale of the company’s trading entities to Baker Tilly. The sale is expected to complete within two weeks, following regulatory and shareholder approval.”
The sale will not recover Lloyds’ secured debt in full and will realise no value for ordinary shares in the plc, which had warned earlier this month that, in view of its level of debt, only “minimal value, if any” would be attributed to shareholders even in the event of an offer by Baker Tilly.
Matt Smith, joint administrator and restructuring services partner at Deloitte, said: “We believe the proposed sale to Baker Tilly represents the best outcome for the RSM Tenon group. The management of the group have stabilised the business, returning it to profitability over the past 18 months and making this transaction possible to secure its future.
“In the meantime we are working closely with the directors of the trading entities and their management and staff to continue to support the business until the sale is completed. We appreciate the cooperation and support from the staff, customers, suppliers and landlords during this period.
“Trading in RSM Tenon Group plc’s shares on the London Stock Exchange has been suspended in light of our appointment.”
RSM Tenon is the seventh largest accountancy and business advisory firm in the UK, employing around 2,500 people across 35 offices which include a branch in Chelmsford. No job losses are expected.
Among the businesses which remain outside of any insolvency process and are included in the sale to Baker Tilly are: RSM Tenon Limited, RSM Tenon Investment Solutions Limited, RSM Tenon Financial Management Limited, RSM Corporate Transactions Limited, RSM Tenon Corporate Finance Limited and certain other non-trading subsidiary companies.