Adcorp takes a cut in Dare disposal


Adcorp takes a cut in Dare disposal


Published Date: 2020-09-23 | Source: Stephen Gunnion | Author: Stephen Gunnion

Adcorp takes a cut in Dare disposal

The staffing and training group has sold the Australian business for a fraction of what it paid five years ago.

Adcorp has reached a deal to sell Dare Holdings and Adcorp Holdings Singapore to global staffing company Competentia for an estimated A$3.44 million (R41.4 million) as it scales back its business in Australia and reduces debt.

Adcorp bought Dare, a specialist oil and gas workforce recruiter, for A$30 million in 2015. The company provides technical skills placements in Australia and Asia with a presence in Singapore through Adcorp Singapore by sourcing highly qualified and experienced temporary, contract and permanent staff for local, national and international clients.

Competentia is focused on building and managing workforces in the Energy and Resources industry. It offers staffing solutions ranging from recruitment and onboarding to training, payrolling and mobilising human capital.

Adcorp said it had performed a rigorous assessment of its strategic position in Australia and had decided to explore exit opportunities given the challenges experienced in that market. This would allow it to focus on stabilising and growing its SA operations. The disposal was also consistent with its long-term strategy to focus its activities on its core capabilities and to utilise the proceeds from the sale of non-core assets to reduce gearing.

The company said shareholders should continue to trade cautiously in its shares as negotiations regarding the disposal of its Financial Services division were continuing.

Its shares fell 4.5% to R1.91 in a single trade yesterday.


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