HCL deal still on despite second delay
3 April 2013
Healthcare recruiter Healthcare Locums (HCL) has announced a second extension to the deadline for its two major shareholders to decide whether or not to make a formal offer for the company.
Wed, 3 Apr 2013Healthcare recruiter Healthcare Locums (HCL) has announced a second extension to the deadline for its two major shareholders to decide whether or not to make a formal offer for the company.
But a source close to HCL tells Recruiter says that agreement is close, with a few minor details being resolved.
In February, HCL said it had received an indicative offer from Toscafund Asset Management and Ares Capital Europe (ACE), who together own 72.5% of HCL’s shares, to purchase the remaining shares from current shareholders, and indicated their intention to inject “significant capital” into the business.
As part of that announcement, HCL said it had set a deadline of 6 March for Tosca and ACE to decide whether or not to make a formal offer for HCL. However, in March this deadline was extended to today [3 April].
Today’s announcement extends this deadline by a further week to next Wednesday, 10 April.
In its statement to the City today, HCL says the board has seen a proposal that Toscafund and ACE “are continuing to work towards making a formal offer …and the provision of additional capital to the company.
“Toscafund and ACE are in advanced discussions with HCL's lending banks and the company in order to finalise their proposal. Toscafund and ACE need an extension to the timetable to reach agreement with HCL’s lending banks and the company.”
Philip Ellis, principal at Optima Corporate Finance, tells Recruiter that the second extension indicates that things have not gone to plan and that there are sticking points. “They wouldn’t have wanted this to have happened, and it’s a clear indication that they haven’t been able to achieve what they wanted to achieve in the time hoped.”
Ellis adds: “If the HCL board knew that a deal between HCL, its banks and the two shareholders wasn’t going to happen, they would be obliged to tell the market that it wasn’t going to happen.” The fact that no such announcement has been made indicates that they are still working towards an agreement, he says.
But a source close to HCL tells Recruiter says that agreement is close, with a few minor details being resolved.
In February, HCL said it had received an indicative offer from Toscafund Asset Management and Ares Capital Europe (ACE), who together own 72.5% of HCL’s shares, to purchase the remaining shares from current shareholders, and indicated their intention to inject “significant capital” into the business.
As part of that announcement, HCL said it had set a deadline of 6 March for Tosca and ACE to decide whether or not to make a formal offer for HCL. However, in March this deadline was extended to today [3 April].
Today’s announcement extends this deadline by a further week to next Wednesday, 10 April.
In its statement to the City today, HCL says the board has seen a proposal that Toscafund and ACE “are continuing to work towards making a formal offer …and the provision of additional capital to the company.
“Toscafund and ACE are in advanced discussions with HCL's lending banks and the company in order to finalise their proposal. Toscafund and ACE need an extension to the timetable to reach agreement with HCL’s lending banks and the company.”
Philip Ellis, principal at Optima Corporate Finance, tells Recruiter that the second extension indicates that things have not gone to plan and that there are sticking points. “They wouldn’t have wanted this to have happened, and it’s a clear indication that they haven’t been able to achieve what they wanted to achieve in the time hoped.”
Ellis adds: “If the HCL board knew that a deal between HCL, its banks and the two shareholders wasn’t going to happen, they would be obliged to tell the market that it wasn’t going to happen.” The fact that no such announcement has been made indicates that they are still working towards an agreement, he says.
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