Cosalt gets takeover approach

TROUBLED offshore services group Cosalt has received a takeover approach from chairman David Ross.

Mr Ross said it would be easier to recapitalise the Grimsby-based company and move it forward as a private business.

Mr Ross said he would pay 0.1p for each ordinary share in issue.

The group said trading continues to be challenging and repeated last month’s statement that results for year to December 31 are expected to be significantly lower than the board’s previous expectations

Last month Cosalt dealt investors another hammer blow with a profits warning.

The company, which has suffered a glut of problems including an ongoing legal dispute, heavy debts, pension liabilities and weak trading, said working capital has been hit by the delayed sale of a business.

Cosalt finally completed the sale of its marine safety division in August for £31m, but only after the deal had been probed by the Office of Fair Trading. The company said it has also delayed the roll-out of a pivotal workwear contract with fire services in the South East of England. The contract, won a year ago, is worth more than £30m over eight years.