Struggling recruitment firm Chandler Macleod has been thrown a rope, with investment bankers Mark Carnegie and John Wylie offering to buy a 19.9% share of the business.
Struggling recruitment firm Chandler Macleod has been thrown a rope, with investment bankers Mark Carnegie and John Wylie offering to buy a 19.9% share of the business.
The Lazard Carnegie Wylie Investment Management group says it will pour $10.9 million into Chandler Mcleod in exchange for over 40 million shares.
Chandler Macleod managing director Ian Basser says the investment offer is a welcome one.
“We are pleased that an investor of Lazard Carnegie Wylie’s calibre recognises Chandler Macleod’s strengths and opportunities and the confidence it has shown in the company and its management team,” he said in a statement.
The deal also includes an underwritten rights issue which Basser hopes will help it deal with $76 million worth of loans. While it recorded $850 million in revenue last year, the group only made a profit $2.7 million.
The first shares will settle today, while the remaining 23.5 million are subject to shareholder approval at the next Chandler Macleod annual meeting on 29 October.
Carnegie says he is excited about the forthcoming “business partnership”.
“As an investment, Chandler Macleod is attractive as it is an established business, has an impressive management team and solid outsourcing earnings which underpin its sustainability and growth prospects.”
Read more about Chandler Macleod and recruitment
Smart Company is the leading online publication in Australia for free news, information and resources catering to Australia’s entrepreneurs, small and medium business owners and business managers.
