Ross makes Cosalt bid

COSALT chairman David Ross has offered to buy the entire share capital of the business for £400,000 in a move that would see the company delist from the stock market.

Through a new company called Oval, Mr Ross has offered a deal which puts an enterprise value on the marine safety firm of £14.4m.

Cosalt shareholders are in line to receive 0.1p per share under the terms of the deal which has been unanimously backed by its independent directors. Cosalt shares closed last night at 0.35p.

Mr Ross, co-founder of Carphone Warehouse, said: “This offer represents an opportunity to preserve the company as a going concern and to provide the necessary investment to rebuild the company.”

The company currently has debts of around £14m and a pension deficit of some £9m.

In a statement, the company said it needed a “significant injection of capital” to stay afloat but that a number of major shareholders had refused to put further cash into the business.

It said: “Given the financial position that the company is in, David Ross believes that to preserve the Company’s future and to provide the opportunity to existing investors to recover what little value remains in the Cosalt Group’s equity, that it is in Cosalt shareholders’ interests to accept the Offer.

“Oval believes that it is no longer appropriate to maintain the company’s listing as it is disproportionately restrictive and costly for a business of its size and that it would be easier to address the company’s issues as a private company.”

Mr Ross already owns 15% of Cosalt’s shares and Oval has also received the backing of Sovereign Holdings which owns 18%.