Terms agreed on Rotala deal
A deal has been put in place for the acquisition of transport group Rotala, which operates Diamond Bus in the West Midlands.
RGL (Rotala Group Limited) and Rotala have reached agreement on the terms and conditions of a recommended acquisition.
A trio of directors of Tividale-based Rotala – Simon Dunn, Bob Dunn and John Gunn – owned 41.2% of share capital.
And now an offer has been agreed with Graham Spooner, Deputy Chair and Senior Independent Director of Rotala, saying: "The Rotala Independent Directors are pleased to recommend RGL's offer of 63.5 pence in cash for each Rotala Share which represents a significant premium to both the Rotala Share price before commencement of the Offer Period and the Tender Offer price per share."
Simon Dunn, Director of RGL, said: "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. We believe that the Acquisition also provides a much-needed liquidity event for Rotala Shareholders."
A statement added: "The offer price values the entire issued and to be issued share capital of Rotala at approximately £23.5 million."