BIRMINGHAM-based Cattaneo Corporate Finance Solutions advised on the disposal of Salford-based Robotic Technology Systems as the company embarks a break-up of its trading businesses to become a cash shell.
RTS manufactures robotic equipment used in factory lines and by scientific companies and it has announced it is proposing to sell RTS Life Science Ltd.
The division was put together to incorporate the trade and assets of both RTS Flexible Systems Limited and RTS Thurnall (Holdings) Plc as well as its North American company, RTS Life Science LLC.
The Cattaneo Corporate Finance Solutions team was led by Jonathan Hall and Charles Cattaneo was supported by Stephen Bishop and Ian Stanway.
The RTS businesses are being sold to Cheshire-based Entologi, with RTS chief executive Gary Walsh set to become a director of Entologi if the deal is approved.
Finance director Jon Sharrock has also announced his intention to leave but will stay on in a part-time basis to help with the firm’s transition until the end of the year.
RTS has been on the stockmarket since 2002 and moved to the AIM in 2005 but, since demerging a nuclear services division in May 2006, it has experienced “declining revenues and uneven trading results”.
Net assets have dwindled from £14.6m at the end of 2006 to £2.7m by June 30 this year as losses have racked up.
RTS group chairman Christopher Brown said: “The board believes the operating businesses would be better served by the greater financial, managerial and other resources available to it as part of Entologi.
“Following completion of the disposal, the board will be pursuing an investing policy to acquire industrial businesses with defensible technologies and sustainable competitive advantage.”
A meeting has been called for shareholders to approve the deal on November 5.
The board said it had already received assurances from shareholders responsible for 29.1% of the company’s equity they will vote in favour of the deal.
