Marlowe to demerge occupational health division

Business-critical services provider Marlowe intends to demerge its occupational health division from Marlowe to form Optima Health as an independent company to be admitted to trading on the AIM market of London Stock Exchange.

Marlowe said on Thursday that the decision followed a strategic review of the company and would be implemented by way of a dividend in specie of ordinary shares in the capital of Optima Health to shareholders.

The AIM-listed firm stated that each shareholder would received one Optima Health share for every existing Marlowe ordinary share.

Interim chairman Michael Ashcroft said: "The demerger will allow the respective boards of Marlowe and Optima Health to explore strategies tailored to their distinct end markets, providing greater flexibility with which to maximise shareholder value.

"Following the demerger, Marlowe's business will consist of the market-leading compliance service TIC division which comprise the fire safety & security and water & air hygiene businesses. The group is well positioned and has a clear strategy to drive organic growth, margin enhancement and strong cash generation."

As of 0905 BST, Marlowe shares were up 6.84% at 459.40p.

Reporting by Iain Gilbert at Sharecast.com