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ReThink Group

  • BY: Andrew Hore |
  • POSTED: 10/11/2014 |

Recruitment services provider ReThink Group wants to cancel its Aim quotation and launch a tender offer for up to 30% of its share capital at 5p a share.

The share price rose 0.5p to 4.5p on the news. Shareholders owning 72.7% of ReThink says that they will support the proposals – 75% of the votes are required to pass the resolutions.

Management says that there is a lack of liquidity in the shares and this has led to an undervaluation of the company. However, the share price has been held back by selling by former chief executive Jon Butterfield. He is backing the proposals and he can tender all of his 10.375 million shares.

In the first half of 2014, net fee income improved from £9.59m to £10m but underlying profit fell from £825,000 to £610,000.

The tender offer will cost up to £1.75m and a £1.5m term loan will help to finance this.

ReThink is in negotiations to acquire three businesses which have net fee income of nearly £15m between them. However, one of the acquisitions may not go ahead if ReThink leaves Aim.

Download the latest AIM Journal from http://www.hubinvest.com/ AIMPDFNovember2014_62

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