RSM Tenon heads for less red tape to undertake transactions without shareholder apporval
THE SHARE LISTING of RSM Tenon has been moved from ‘premium’ to ‘standard’, a move which should give more leeway to the firm to undertake transactions.
In a statement to the stock exchange, the firm said the move would free it from regulations that would require shareholder approval for transactions.
“These restrictions, which would not be applicable to a company that has a standard listing rather than a premium listing, have prevented the company from carrying out a number of projects which would have required shareholder approval by virtue of size and/or the involvement of related parties,” the firm said in its statement.
“Consequently, these projects have been rendered impracticable on both a time and cost basis. As a standard-listed company, certain transactions could be completed in a shorter timescale and at lower expense.
“The board believes the greater flexibility afforded to the company by this transfer will facilitate a more cost-efficient and timely restructuring of the business and support management’s efforts to improve the cashflow performance and strengthen the financial position of the company in as short a timescale as possible.”
RSM Tenon is also re-entering negotiations on the terms of paying outstanding deferred consideration over its RSM Bentley Jennison acquisition.
The firm wants to amend the terms so they are not tied to the performance of the acquired business, and that the payment terms are extended, which would “materially aid the integration process”.
“At present there can be no certainty as to the final terms, or completion date, of any such renegotiation,” it stated.