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The Rethink Group (RTG: AIM), a UK-based recruitment and consulting company, announced that it has entered into a sale and purchase agreement to sell its entire issued share capital of subsidiary Aiimi Limited, its technology services division, to Medina House Limited.
Medina House Limited is a vehicle controlled by the management team of Aiimi, including Steve Salvin, Executive Director of Rethink. As a result, Mr Salvin has resigned from the Board of Rethink with immediate effect.
According to Rethink, the disposal of the non-core business reflects the company’s growth strategy, which is driven by the Talent Management and Recruitment divisions. The disposal will enable the Group to focus on enhancing the value of these core divisions, which comprised 96% of total Group revenue for the six months ending 30 June 2013.
In accordance with the agreement, Rethink will receive an initial cash consideration of £220,000 following the completion date of the 22 November 2013. Rethink will also receive an interest bearing loan note of £200,000, with accrued interest, payable on the 1 February 2014.
Steve Wright, CEO of Rethink, commented: "After careful review and consideration, it has been concluded that Aiimi's services and capabilities fall outside the Group's growth strategy. Consequently, the Board has agreed that it is in the best interests of all stakeholders, that the business be sold to a management led buy-out team, whose aspirations for the business are more likely to be realised with new investment and independence moving forward. We wish Steve Salvin and his team success in their endeavours."