The sale of Rotala PLC to a new company, Rotala Limited, wholly owned by members of the former PLC board, has been sanctioned and the company delisted from the London Stock Exchange
Rotala has announced that the acquisition of Rotala PLC by Rotala Group Limited was completed on 17 January following the sanctioning of the move on 15 January by the Companies Court of the High Court of Justice of England and Wales. The new Rotala Group Limited is wholly owned by the existing Chief Executive of Rotala, Simon Dunn, Bob Dunn (Executive Director), and John Gunn (Non-Executive Chairman), together with certain of their spouses and other personal interests.
Rotala PLC, now called Rotala Limited, accordingly delisted from the Alternative Investment Market (AIM) of the London Stock Exchange on 18 January.
The reasons why the Board took this decision included a belief that, should Rotala remain publicly quoted on AIM, it would continue to find it difficult to attract and retain the interest from institutional investors and the research coverage on its activities, which it believes are necessary to generate the desired level of stock market liquidity and market rating that would make retaining the AIM quotation worthwhile.
Rotala’s board believes that, in order for Rotala to achieve its full potential, it is better suited to a private company environment, where management is in a stronger position to deliver its longer-term business plan, with a simplified corporate structure, free from, among other things, the requirements to meet the UK public equity market’s shorter-term expectations and the regulatory burden, with its associated expense, which comes with maintaining a UK public quotation.
The Board says it intends to maintain Rotala’s continuous pursuit of operational excellence, while seeking operational efficiencies. It will also continue to invest in Rotala’s established platform and to support the growth of its existing businesses in their current markets, whilst at the same time seeking out new opportunities in other geographical regions.
