Brandon Management in buy-out plan
The Brandon board of directors has issued a statement confirming that it has given permission for the management team, led by Charles Skinner and Chris Sims, to “explore a management buy-out which may or may not lead to an offer being made for the Company”.
The statement also said, “All matters relating to the discussions will be considered by a committee of independent directors. It must be emphasised that the discussions are at a very preliminary stage and there is no certainty that an offer for Brandon will be made”.
The statement comes after sharp movements in the company’s share price since early December spurred rumours. Brandon’s share price has underperformed the FTSE, Support services and other publicly quoted tool hirers this year in spite of its relatively aggressive acquisition programme. Until this month the share price was lower than it was at the start of the year, while most businesses have seen increases of over 20 percent.
It will be interesting to see what the effects of this announcement are, if it does not push the share price too high, Skinner and his team could acquire a bargain.