Marlowe PLC (AIM:MRL) said it plans to spin off its occupational health division onto AIM as Optima Health PLC, as it continues to carry out its strategic restructuring.
Lord Ashcroft, Marlowe's interim non-executive chair, better known as the former Conservative Party treasurer and political biographer, 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."
The Optima Health demerger will be implemented by way of a dividend in specie of ordinary shares to Marlowe shareholders so each shareholder would receive one Optima Health share for every existing share held on 25 September, with the new Optima shares to be listed on AIM the next day.
Ashcroft said the demerger will see Marlow focus on its testing, inspection and certification (TIC) business, which is "well positioned and has a clear strategy to drive organic growth, margin enhancement and strong cash generation".
A strategic review launched last November has already seen the compliance software group sell off some other assets to private equity for £430 million early this year.
The continuing TIC operations, comprising Fire Safety & Security and Water & Air Hygiene, generated £292.3 million of revenue and £35.2 million of adjusted EBITDA in the year to March 2024.
In a separate stock exchange statement, Optima said it has no intention to raise new capital through an offer or sale of ordinary shares to institutional investors or the public in connection with admission.
It said Panmure Liberum will act as its nominated adviser and corporate broker.