Ailing Cosalt may go private
Friday 18 November 2011
David Ross has made an approach to take Cosalt, the offshore safety company he chairs, private for 0.1p a share, or £400,000.
The co-founder of Carphone Warehouse, whose father and grandfather also chaired Cosalt, already owns 15 per cent of the company, which had a market value of £3.2m on Wednesday. Its shares slumped 38 per cent to a new low of 0.475p yesterday and the company warned that it is likely to use up its borrowing facilities before the end of the year.
"This company clearly needs more money – it has only just had a fund raising [through the £27m sale of its marine business] and that clearly wasn't enough," Roger Hardman, an analyst at Hardman & Co, said.
He added that Cosalt is being held back by a lack of capital. The company's net debt is £12.3m, an amount that includes more than £3m in loans from shareholders including Mr Ross.
Cosalt was founded in 1873 as a co-operative of boat owners, including Mr Ross's great-grandfather, as the Great Grimbsy Coal, Salt and Tanning Company.
Mr Ross's grandfather bought out the company, which was floated on the Stock Exchange in 1971.
- 1 Nigel Farage: Me vs Russell Brand on Question Time – he's got the chest hair but where are his ideas?
- 2 Harry Potter fans can apply to the Hogwarts-inspired College of Wizardry
- 3 Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
- 4 Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
- 5 Orange Wednesdays are no more
Weather bomb in pictures: Storms cuts power for tens of thousands – and snow is on the way
Jessica Chambers: 19-year-old woman 'doused with lighter fluid and burned alive' in the US
Russell Brand calls Nigel Farage 'poundshop Enoch Powell' in BBC Question Time debate
Russell Brand was rendered speechless on Question Time by this man
Fury at Airbus after it hints the super-jumbo may be mothballed
Disgruntled RBS worker writes hilarious open letter to Russell Brand after anti-capitalist publicity stunt leaves him hungry
Shock poll shows voters believe Ukip is to the left of the Tories
Nigel Farage's approval rating hits 'record low' as popularity suffers in wake of Ukip sex scandal
Ukip candidate jokes about 'shooting peasants' in racist and homophobic rant
Pakistan school attack live: Taliban kill at least 132 children in 'horrifying' massacre
Germany sees 'visible rise' in support for far-right extremism in response to perceived 'Islamisation' of the West
iJobs Money & Business
£32000 - £35000 per annum + benefits: Ashdown Group: Marketing Services Manage...
£Neg. (DOE) + Excellent Benefits: Guru Careers: A Finance Account Manager with...
£40000 - £470000 per annum + bonus: Ashdown Group: Java Developer / J2EE Devel...
£45000 - £55000 per annum + Benefits: Ashdown Group: An exciting opportunity h...