Bus operator could be bought for more than £19m
A trio of directors of Rotala have submitted a proposal to buy the Diamond Bus operator in a deal which would value the listed business at about £19.7 million.
Tividale-based Rotala was formed in 2005 and has grown through buying coach and bus operations around the country.
Chief executive Simon Dunn, managing director – North West Bob Dunn and non-executive chairman John Gunn have outlined a possible offer of 63.5p per share.
The offer would be made by a newly incorporated entity established by the directors and for the share capital of the business which they do not already own.
They, together with their concert parties, currently hold 11,661,434 ordinary shares of 25p each, representing approximately 37.59 per cent of the issued share capital.
A committee of independent directors has been formed to consider the possible offer.
They have indicated that they would be minded to recommend the possible offer to Rotala shareholders should a firm intention to make an offer be announced.
Shore Capital is advising Rotala over the proposal.
Shareholders are advised to take no action at this time.
The offeror is required, by not later than 5pm on October 17, either to announce a firm intention to make an offer for the company or announce that it does not intend to make an offer.
This deadline can be extended with the consent of the Takeover Panel.
