Rotala to become private company
Management buyout should allow the company to ‘operate in a more agile way’
Managers at Rotala have completed a buyout of the company, seeing them acquire the entire issued and to be issued share capital of Rotala.
RGL is a private limited company formed specifically for the purpose of the acquisition. Following completion of the take-over, RGL and Rotala will be directly and indirectly owned by the directors of RGL: Simon Dunn, Robert Dunn and John Gunn (the current Chief Executive, Managing Director – North West, and Non-Executive Chairman of Rotala respectively), the spouses of Simon Dunn and Robert Dunn, and Wengen Pension Plan.
The RGL Directors believe that Rotala’s AIM quotation no longer represents good value for Rotala and its shareholders, providing limited share price growth and access to equity capital while incurring material costs and carrying a regulatory burden. In addition, they believe that the lack of liquidity in the Rotala shares, and the perceived desire of many Rotala Shareholders to seek an exit from their investment has acted as a restriction to both the company’s share price potential and its ability to raise funding by the issue of new shares to support new opportunities for growth. The RGL Directors see the acquisition of Rotala as an opportunity to allow them to invest to support Rotala’s growth potential as a private company, combined with providing an attractive cash return to Rotala Shareholders at the offer price.
The scheme is expected to become effective in the first quarter of 2024.
“We are excited about the opportunity for Rotala as a private company, without the regulatory and cost burdens associated with an AIM quotation” – Simon Dunn, Director of RGL
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.”
“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…” – Graham Spooner, Deputy Chair and Senior Independent Director of Rotala
Graham Spooner, Deputy Chair and Senior Independent Director of Rotala, said: “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.”