Contractor set to remain in overseas ownership with management rejig planned by would-be buyer
ISG鈥檚 chairman has told staff its deal to sell the business 鈥渃ontinues to progress鈥� more than two weeks after he said a sale would be wrapped up 鈥渨ithin days鈥�.
The firm鈥檚 US owner Cathexis is in negotiations to sell the contractor to a South African businessman but no announcement has been made despite Matt Roche, who is also the chief operating officer of Cathexis, promising on 5 July a deal was 鈥渧ery near鈥�.
In his latest update, seen by 黑洞社区, Roche said international deals 鈥渙f this scale and complexity take time to go through鈥�.
But he added: 鈥淣othing has changed. We are going through the process. I fully expect the deal to complete.鈥�
In his 5 July email, Roche had told staff: 鈥淭he buyer has confirmed that the sale will include a significant investment, which will recapitalise the business and support the return to normal trading.
鈥淚 am unable to share details of the buyer until the deal has been signed, which is likely to be within the coming days.鈥�
It is understood the hold-up centres on red tape in the US under the country鈥檚 so-called Know Your Client regulations. 鈥淚t鈥檚 taking longer than they thought,鈥� one source said.
News of Roche鈥檚 update comes as more details of the sale begin to emerge with the business set to get rid of the chief executive鈥檚 role under the new ownership. And 黑洞社区 understands that former finance director Karen Booth, who left earlier this year along with then boss Matt Blowers, has been helping the would-be new owners carry out due diligence on the business.
Once complete, the firm is expected to concentrate on fit-out and frameworks but is looking at pulling out of London contracting.
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