Transport group takeover offer secures deadline extension
Directors at transport group Rotala have been given an extension to submit their firm offer to take over the business.
The deal which valued the group at £19.7m was proposed by Simon Dunn (CEO), Bob Dunn (MD North West) and John Gunn (non-executive director) who already own 37.59% of Rotala’s share capital and are now looking at purchasing the rest at 63.5 pence per share.
A deadline was set for 5pm today (October 17) for the trio to announce a firm offer or not, but as discussions are continuing, an extension has been given to 5pm on November 14.
As a result of the approach, a committee of independent directors comprising Graham Spooner (non-executive deputy chair and senior independent director), Graham Peacock (independent non-executive director) and Kim Taylor (group finance director) had been formed to consider the possible offer and have said they would be minded to recommend it to shareholders.
Following the announcement, the Tividale-headquartered company saw its share price up by 42%.
Rotala disposed of £30m worth of assets in a deal with Transport for Greater Manchester (TfGM) and the Greater Manchester Combined Authority (GMCA) in June. A depot and 134 vehicles were sold by the company to repay the mortgage and hire purchase debt of the assets.