Tuesday June 9, 11:29 AM
Another way to cut costs: shed shareholders
LONDON, June 9 (Reuters) - Prime People (LSE: PRP.L - news) on Tuesday offered to buy out investors owning 500 or fewer shares in the recruitment firm, becoming the second small British company in a week planning to shed the majority of its shareholders.
In a bid to cut out the cost of administering them, Prime People said shareholders with stakes worth 105 pounds ($169) or less would be offered cash for their shares, in a move designed to reduce its shareholder base to about 250 from 600 at present.
The company is offering 21 pence a share, which was the stock's official closing price on June 8, and says shareholders will not incur dealing charges should they take up the offer.
'Certain of the costs inherent in maintaining a register of this size will be reduced and an exit will be provided to small shareholders,' the company said in a statement.
Shares in the company, which operates under the brand Macdonald & Company and specialises in recruiting for the property and real estate industries, have slid from more than 120 pence in early 2007 to 21 pence, giving it a stock market value of about 2 million pounds ($3.2 million).
Corporate communications consultancy Cheerful Scout Plc on Thursday announced plans to slash its number of shareholders to about 36 from 475, shedding those with stakes worth less than 625 pounds by offering to buy out holders of fewer than 12,500 shares for 5 pence a share.
(Reporting by Paul Hoskins; Editing by Rupert Winchester) ($1=.6230 Pound) Keywords: BRITAIN SMALLCAPS/
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