Work Group plc Update and Suspension of Share Trading (1093S)

TIDMWORK

RNS Number : 1093S

Work Group plc

16 December 2016

Dissemination of a Regulatory Announcement that contains inside information according to REGULATION (EU) No 596/2014 (MAR).

16 December 2016

Work Group plc

(the "Company" or the "Group")

Update and Suspension of Share Trading

The directors of Work Group plc (the "Board") are now able to provide an update on progress in finding a suitable acquisition to allow the Company to fulfil its stated investing strategy.

Simon Howard, the Company's Chairman, stated: "We are pleased to advise that we entered into a memorandum of understanding on an opportunity for the potential acquisition of a group of companies in the business services sector, and that extensive due diligence has been on-going for some time.

In the course of this year we reviewed a number of opportunities in order to achieve a satisfactory outcome for shareholders. However, the transaction on which we are now engaged is, in the opinion of the Board, the one we expect will deliver the greatest value for shareholders along with the prospect of investing in a business capable of scaling into a sizeable business."

Such an acquisition will constitute a reverse takeover under the AIM Rules for Companies ("AIM Rules") and therefore, in accordance with rule 14 of the AIM Rules, will require the publication of an AIM admission document ("Admission Document") and approval of shareholders of the Company in a general meeting. Whilst the process has been underway for some time, it is clear that the Admission Document setting out details of the acquisition and to obtain shareholder approval for the acquisition will not be published before February 2017, and therefore after the date on which the Company is required to implement its investing strategy, being 30 December 2016.

Accordingly, the Company has requested an immediate suspension of trading in its shares on AIM until such time as it has, in accordance with rule 14 of the AIM Rules, published the Admission Document and, in accordance with rule 15 of the AIM Rules, completed the reverse takeover. The Company is targeting completion of the reverse takeover to take place as soon as possible in the first quarter of 2017.

The Company will make further announcements in due course. There can be no certainty that definitive documentation relating to the proposed reverse takeover will be entered into or subsequently that the reverse takeover will complete.

Enquiries:

 
 Work Group                 Tel: [phone] 
  Simon Howard, Executive 
  Chairman 
 
 Allenby Capital Limited    Tel: [phone] 
  (Nominated Adviser & 
  Broker) 
  Jeremy Porter 
  James Thomas 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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December 16, 2016 09:00 ET (14:00 GMT)