Rotala PLC is set to move from publicly-traded status on the Alternative Investment Market (AIM) and into the private ownership of three of its Directors, their spouses, and a personal pension plan of one of those individuals, during Q1 2024.
It comes after three other, independent Directors of Rotala PLC recommended acceptance of the offer of 63.5p per share, and the reaching of agreement on terms and conditions around the purchase by the offerors of all shares in Rotala PLC that they do not already own.
A new business, Rotala Group, has been formed solely for the purpose of the acquisition. News of the potential sale first broke in September. Multiple irrevocable undertakings from Rotala PLC shareholders to vote in favour of the sale have since been received.
Behind Rotala Group are Rotala PLC Chief Executive Simon Dunn, Managing Director – North West Bob Dunn, and Non-Executive Chairman John Gunn. All will retain their positions with Rotala PLC. Simon Dunn and Bob Dunn will be Directors of the newly-formed company, and Mr Gunn will be its Chairman.
Once the ownership change is completed, Rotala PLC intends to continue to expand “by acquiring bus depots around the UK,” it says.
Speaking about the progression, Simon Dunn says: “We are excited about the opportunity for Rotala as a private company, without the regulatory and cost burdens associated with an AIM quotation, which will allow us to operate in a more agile way.”
The offer values Rotala at approximately £23.5 million. In details surrounding the change of ownership published on the company’s website, it is noted that the three Rotala Group leaders believe that a privately-held environment would better suit the delivery of the company’s long-term business plan thanks to a simplified corporate structure.
In addition, the they believe that if Rotala PLC was to remain on the AIM, the business “would continue to find it difficult to attract and retain sufficient interest from institutional investors.” There “is likely top be a significant desire from certain Rotala shareholders for a liquidity event which is not currently available to all of them.”
Rotala turnover has grown from under £4 million in 2005 to around £85 million in its most recent results. However, aspirations behind the business’s listing on the AIM “have not been realised,” and Rotala “has been unable to attract and retain the institutional investors which are key to the provision of new capital,” the company says.