No surprises in draft due diligence report

Media Release

11 July 2012

No surprises in draft due diligence report

In March this year, three Industry Training Organisations - the Aviation, Tourism and Travel Training Organisation (ATTTO), the Hospitality Standards Institute (HSI) and the Retail Institute - formally entered into a due diligence process for a potential merger.

BDO were engaged to undertake a due diligence process on financial and some non-financial matters during the period April to July 2012 in connection with the proposed merger of three Industry Training Organisations.

The due diligence process identified no substantive issues that would be an obstacle to a merger proceeding if the boards and their respective industries decided to proceed. HSI Chief Executive Ken Harris says “the report shows no impediments to merge the organisations and all three ITOs intend to continue on the merger process.”

However, that process will be stalled by the review, currently underway, of the Industry Training Act by the Ministry of Education. The recommendations from the Government’s review are due for release in early August and will indicate what the role of Industry Training Organisations will be in the future.

“Without having this vital piece of information, it is impossible to move to the next stage of consultation with our industry stakeholders. We simply don’t know what the future environment and future shape of any potential organisation is likely to be until we get the Minister’s decision,” adds Ken.

A vital step in the process is gaining industry acceptance of the proposed merger. There will be a full consultation process started once the review of the Industry Training Act is completed. Until the Ministry of Education report is received, the three ITOs will continue to deliver a high level of service to their respective industries.

ENDS

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