7th Jul 2023 11:33
(Alliance News) - Rotala PLC on Friday said it completed the disposal of its Bolton depot to the Greater Manchester Combined Authority for GBP30.4 million.
The Tividale, West Midlands-based bus operator said all conditions of the Bolton depot purchase agreement were satisfied, allowing the sale of the site and its associated fixtures, fittings, plant and machinery to the GMCA.
In early June, Rotala exchanged contracts with Transport for Greater Manchester and the Greater Manchester Combined Authority to sell the depot and related vehicles for a total of GBP30.4 million, subject to shareholder approval and landlord consent. Both of these have now been obtained.
The company said proceeds will be used to repay a mortgage and hire purchase debt for around GBP14.9 million and to repay the remaining outstanding drawings on its revolving commercial facility for GBP10.8 million. Further, cash will be used to strengthen the company's balance sheet.
Shares in Rotala were quoted at 44.50 pence each on Friday late morning in London, having last traded at 42.30p each on Thursday early afternoon.
By Greg Rosenvinge, Alliance News reporter
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