RSM Tenon warns of ‘minimal value’ for investors

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Accountancy practice RSM Tenon today said that takeover talks with rival Baker Tilly were continuing, but any deal is likely to see shareholders’ interests wiped out.

The debt-laden firm revealed last month that it had received an unsolicited approach from Baker Tilly, and the potential transaction would require the support of its sole lender, Lloyds Banking Group.

In an update to the stock market this morning, RSM Tenon – the UK’s only listed accountant – said: “It is now likely that, as a consequence of the company’s high debt level, if an offer is made by Baker Tilly, minimal value, if any, will be attributed to the issued share capital of the company.

“Lloyds Banking Group plc continues to be supportive of the business as the company discusses with it ways to address its high level of borrowings.”

Shares in the firm fell more than 38 per cent to 1.2p in early trading following the announcement.

RSM Tenon, which had net borrowings of £80.4 million at the end of last year, stressed that there was no certainty that Baker Tilly will make an offer for the firm.