LONDON, UK: Rotala Plc (AIM: ROL.L), an operator of bus routes in the UK for businesses, local authorities and the general public, has announced that it has exchanged contracts with Transport for Greater Manchester (“TfGM”) and the Greater Manchester Combined Authority (“GMCA”) in relation to the conditional disposals of its Bolton depot and the majority of its related vehicles (the “Proposed Disposals”).
The Proposed Disposals are subject to the following conditions:
- The approval of Rotala’s shareholders at a general meeting to be held on 27 June 2023; and
- The consent of the superior landlord in certain of the property titles relating to the Bolton depot.
If the Proposed Disposals are completed, Rotala will receive cash consideration of approximately £30.4 million. The proceeds of the Proposed Disposals will be used to repay debt and strengthen Rotala’s balance sheet.
Rotala’s Chief Executive Officer, John Gunn, said: “The Proposed Disposals represent a significant step forward for Rotala. They will allow us to reduce our debt and strengthen our balance sheet, which will provide us with the platform to invest in our core businesses and continue to grow.
“I would like to thank the staff at the Bolton depot for their hard work and dedication. We will be working with TfGM and GMCA to ensure a smooth transition for the employees and customers affected by the Proposed Disposals.”
The Proposed Disposals are expected to complete in the third quarter of 2023.