Recruitment firms build stake in Fairplace

Vedior NV, owner of Select Appointments, has increased its existing stake in the AIM-listed firm. Meanwhile the Blomfield Group, owner of Joslin Rowe and Firth Ross Martin, has bought into Fairplace for the first time.

Vedior, which already owned 18.8% of Fairplace, increased its stake to 40.5% by buying shares from Park Row, an indpendent financial advisor, at 75p each. This was about 20p below the AIM market price.

Vedior then sold some of its shares to Blomfield, leaving Blomfield with 14% of Fairplace and Vedior with 26%.

About 20% of Fairplace shares are owned by its management.

Vedior's purchase means it is now legally obliged to extend its 75p offer to all Fairplace shares. The offer values Fairplace at 4.03m. The shares are currently trading at 84p pence, half their value two years ago.

Fairplace shareholders have until the end of February to accept or decline the offer. But Tony Martin, chairman of Vedior, said the group had not built the initial stake in Fairplace with the intention of becoming a majority shareholder.

Recruitment companies often see a link with an outplacement provider as valuable, as the two businesses prosper at different phases of the economic cycle.