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Pinnacle Staffing Group Plc (PCL:LSE), the healthcare recruitment group, has conditionally agreed the proposed disposal of its Agency Nursing and Medical Services business to Arabella Health Staffing Limited, a wholly-owned subsidiary of Ambition Recruitment Services Limited and part of the A24 Group, for a total cash consideration of 2.75 million Pounds.
The directors believe that the disposal is the optimum strategy to maximise and preserve Shareholder value. The intention after the disposal is to re-focus the company on its doctors recruitment businesses, together with compliance monitoring services in line with the investing policy.
The company has posted to shareholders a circular setting out the reasons for and the principal terms of the disposal, details of the company's proposed investing policy following completion of the disposal and including the notice of the general meeting seeking the approval of shareholders to the disposal and the adoption of the investing policy.
The general meeting will take place at 10.00 a.m. on 6 September 2010 at the offices of Eversheds LLP, One Wood Street, London EC2V 7WS.
Shareholders who are interested, in aggregate, in 51,567,103 ordinary shares, representing approximately 55.67% of the company's issued share capital, have irrevocably undertaken to vote in favour of the resolutions.
The company confirms that, following the announcement on 15 January 2010, all parties with whom the company was in discussions with regard to a possible offer for the entire issued and to be issued share have withdrawn their interest in making such an offer and, accordingly, the company is no longer in an offer period for the purposes of the City Code on Takeovers and Mergers.
Tom Charlton, Executive Chairman of Pinnacle, commented "the board believes the disposal of Pinnacle's Agency Nursing and Medical Services businesses to A24 Group is the best way forward for the company and its shareholders."
"Pinnacle's Nursing and Medical Services businesses have performed significantly below budget in the year to date. We believe that A24 Group is pre-eminently placed to re-position BNA and integrate our other brands into its operations."
"Following completion of the disposal we are proposing an investing policy to invest further in our retained doctors business to grow it organically and by making selected bolt-on acquisitions. This is a sector of the medical recruitment industry which is due for consolidation and where we have an experienced management team."
After the announcement, Pinnacle's shares were down by -6.25% to 3.75 Pence.