Dutch recruitment firm buys Select for pounds 1.145bn
Thursday 02 September 1999
Vedior has made a recommended cash offer for the entire share capital of Select that values each of the company's shares at pounds 10.50. This represents a premium of 18.5 per cent based on the closing middle market price of Select shares on Tuesday.
Analysts say this is not a knock-out price, but it is fair. Select's shares ended 1998 on a low of pounds 3 after the downturn in Asian markets sent the company's value plummeting. If the deal goes ahead, it will represent the largest cash acquisition of a staffing company, topping Blue Arrow's takeover of Manpower in the early 1990s.
The two companies have been in talks for the past three months. It is believed their agreement was prompted by the desire of Select's Investor Group - comprising Odyssey Investments, Waverley, WST and SIH - to cash in its 36.7 per cent stake in the company. The group has agreed to subscribe for up to pounds 109m in new Vedior shares if requested.
Vedior went public last year and has a market capitalisation of pounds 1bn. The firm specialises in traditional staffing, placing clerical and light industrial workers. It operates in nine European countries but is focused on France, Belgium and Spain. According to a spokesman, Vedior was attracted to the Select acquisition because it was looking to develop the specialist side of its business and because it provides access to US and UK markets.
Select is a rapidly-growing specialist recruitment company, which focuses on the IT and accountancy sectors. It has been the most acquisitive staffing company of the 1990s, having bought 55 small businesses in the period.
Neither company would comment on whether there would be job losses, but a Select spokesman said: "This is not a cost-cutting exercise. It is intended to create a strong platform for the company to grow."
Apple has been hit by complaints about the 1.1GB download
Much-loved cartoon character returns - without Sir David Jason
Liam Neeson's Downton dreams
Matt Smith is set to join cast of the Jane Austen classic - with a twist
Actress to appear in second series of the hugely popular crime drama
- 2 Scottish independence: Learn from Quebec's mistakes and beware of promises. Vote Yes.
- 3 A bottle of wine a day is not bad for you and abstaining is worse than drinking, scientist claims
- 5 Have you heard about the film Singapore has banned its people from watching? Well, you have now
Thailand beach murders: Thai PM suggests 'attractive' female tourists cannot expect to be safe wearing bikinis
Scottish independence: Final opinion polls show undecided voters could swing result either way
Scottish independence: Almost half of No voters have felt 'personally threatened' by the Yes campaign
Isis release 'Flames of War' video warning Obama of attacks troops could face in Iraq
Hitler’s former food taster reveals the horrors of the Wolf’s Lair
Daniele Watts: Django Unchained actress detained by Los Angeles police after being mistaken for a prostitute
Scottish independence referendum: A nation divided against itself
The political class is doing what Hitler couldn’t – destroying Britain
Scottish independence: Nationalist leader Jim Sillars threatens pro-union companies with 'day of reckoning' after independence
Portuguese academic says British are 'filthy, violent and drunk'
Scottish independence: David Cameron is becoming the 'George Bush of Britain'
iJobs Money & Business
£70-90,000: Saxton Leigh: Our client a London Market Insurer are seeking a Pro...
£60,000 - £80,000: Saxton Leigh: Our client is an leading Asset Manager based...
£18000 - £23000 per annum + Comission: SThree: The SThree group is a world lea...
£18000 - £23000 per annum + Commission: SThree: Real Staffing are currently lo...