Cosalt gives in to Ross’s offer

The Grimsby-based company agreed to the 0.1p per-share offer, at a discount of 71 per cent to the stock’s close on Thursday, after doubts were raised over its ability to continue as a going concern, with a net debt of about £14m and a pension deficit of about £9m.

Earlier this week, Cosalt said it was exploring several restructuring options as it doesn’t have the funds to continue business beyond the end of the month.

“This offer represents an opportunity to preserve the company as a going concern and to provide the necessary investment to rebuild the company,” said Mr Ross.

Mr Ross, a co-founder of British mobile phone retailer Carphone Warehouse, owns about 15 per cent of Cosalt’s equity.

Oval Ltd, the company he created to buy out Cosalt, plans to take the group private.

The company has an enterprise value of £14.4m, owing to the costs involved.

Cosalt fell on hard times last year as the business was hit by an inventory shortfall, followed by a delayed sale of its marine unit in August.

Shares in the company have lost 87 per cent in the last three months, during which Cosalt reported a wider first-half loss and gave a full-year profits warning.