ARA investigates unauthorised investor pitch suggesting sale of employee-owned business
ARA Group says it will investigate how confidential company information appeared in an investment pitch circulated to wealthy investors without its knowledge or authorisation. The document proposed an investment linked to the employee-owned business and suggested an eventual sale, prompting ARA to deny that the company is for sale or that its chief executive plans to leave.
The pitch, dated 10 October, sought commitments of at least $500,000 and included budgets and forecasts. It was emailed to clients of Metro Commercial Property Group on 15 October, with Rivkin named as the firm managing applications; Rivkin said it was sent prematurely, no applications or funds had been received, and no fund structure had been established. ARA employs more than 5,000 people, reported $1.6 billion in revenue last financial year and has about 480 employee shareholders who collectively own roughly half the company.
In short
- ARA says an investor pitch using confidential information was unauthorised.
- The pitch sought minimum commitments of $500,000.
- ARA denies it is for sale or planning a CEO succession.
Explained simply
ARA Group is an Australian company that provides services including cleaning, security and maintenance. It is partly owned by its employees: about 480 staff shareholders collectively hold roughly half the business.
Metro Commercial Property Group sent an investment pitch to some of its clients, with Rivkin named as the firm handling applications. The pitch included company budgets and forecasts, but ARA says it did not approve the document or know the information had been shared.
The proposed investment suggested the business might eventually be sold. ARA says it is not for sale and its chief executive is not planning to leave; the company’s investigation concerns how confidential information reached the pitch.
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Originally published by Daily Mail as “Turmoil at ARA Group as leaked memo offers investors access to $1.6bn employee-owned company… Insiders insist it’s NOT for sale after confidential pitch circulated bearing board member’s name”.