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Rotala shares jump on GBP19.4 million management-led bid proposal

19th Sep 2023 20:57

(Alliance News) - Rotala PLC on Tuesday said a management-led team has proposed buying the company for around GBP19.4 million.

The Tividale, West Midlands-based bus operator said the 63.5 pence per share cash proposal has been made by directors, Simon Dunn, Bob Dunn and John Gunn, the chief executive, managing director, North West, and non-executive chair respectively.

The offer would be made by a newly incorporated entity established by the three directors, their spouses and certain personal pension plans for the shares in Rotala they do not already own.

The bidding parties currently hold around 38% of Rotala's share capital.

In reply, Rotala said a committee of independent directors has been formed to consider the possible offer. This will comprise Graham Spooner, non-executive deputy chair and senior independent director, Graham Peacock, independent non-executive director and Kim Taylor, group finance director.

The independent directors have indicated to the bidding team they would be minded to recommend the offer to shareholders should a firm intention to make an offer be made.

Talks between the independent directors and their advisers are continuing with the bidding team and their advisers to progress the proposal.

The management-led team now has until October 17 to either announce a firm intention to make an offer or not.

Shares in Rotala closed 43% higher at 60.00 pence in London on Tuesday.

By Jeremy Cutler, Alliance News reporter

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Copyright 2023 Alliance News Ltd. All Rights Reserved.

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