Investor revolt blocks Cosalt bid

A shareholder revolt such as this one is a rare occurrence, and has, in this instance, affected one of the region’s best-known companies.

Cosalt chairman Mr Ross owns 56 per cent of the firm’s shares, and needed at least 75 per cent of voting shares to de-list the Grimsby-based company. However, with just over 73 per cent of the votes cast in favour of the proposal to de-list Cosalt, the company was forced to declare it would remain public.

Private shareholders were angered by Mr Ross’s £800,000 buyout offer. His offer for 0.2p per share was through his Oval acquisition vehicle. Shares in the company have traded above his offer price for some time. A heavy debt burden and an alleged fraud in the company’s offshore division have contributed to its woes. Mr Ross told shareholders at an EGM yesterday that the costs associated with being publicly listed were more than £500,000 per year.

A campaign group, named Stop Oval-Ross Takeover (SORT), was set up in opposition to Mr Ross’s proposals.

Mr Ross said being a publicly listed firm was only benefiting its advisers and its competitors. After the outcome of the vote was announced, he released a statement in which he said the board will plan accordingly.