Share Buyback

RNS Number : 6707F

Rotala PLC

23 March 2022

 

RNS

23 March 2022

Rotala Plc

("Rotala", the "Company" or the "Group")

Share Buyback

Rotala plc (AIM:ROL), an operator of bus routes in the UK for businesses, local authorities and the general public, announces that it intends to conduct on-market purchases under a share buyback programme to repurchase up to 4,292,491   ordinary shares of 25p each in the capital of the Company (the "Ordinary Shares"). In addition to the 800,000 shares currently held by the Company in treasury, any shares repurchased under the share buyback programme, if the programme is conducted in full, will result in the holding in treasury of approximately 10.0 per cent of the Company's issued share capital (the "Buyback"), in line with, and pursuant to, the authorities obtained at the Company's last annual general meeting ("AGM").

The Buyback will be funded from the Company's existing cash resources. The Company intends to re-issue any repurchased Ordinary Shares from treasury as and when share options outstanding under the Company's share option scheme for the Executive Directors and/or members of its senior management team are exercised. Any purchases made following the Company's next AGM, which is expected to be held in May 2022 ("2022 AGM"), will be subject to the limit applying to shares held in treasury of 5,092,491   Ordinary Shares, or approximately 10.0 per cent of the Company's total issued share capital at the time of issue of the notice of the 2022 AGM. The Company intends to operate the Buyback from the date of this announcement.

The Company has appointed Shore Capital Stockbrokers ("Shore Capital") to execute and manage the Buyback and has given an irrevocable instruction to Shore Capital to make market purchases of Ordinary Shares on its behalf, independently of the Company. Shore Capital will make its trading decisions in relation to the Ordinary Shares independently of the Company.

In accordance with the existing shareholder resolution at the AGM, the maximum price which may be paid by the Company per Ordinary Share shall not be more than the higher of 5 per cent. above the average middle market quotations for an Ordinary Share for the five business days immediately preceding the date of repurchase. 

There is no guarantee that the Buyback programme will be implemented in full or that any purchases will be made. 

As at the date of this announcement, the Company's total issued share capital consists of 50,924,918 Ordinary Shares with one voting right per share. The Company currently holds 800,000 Ordinary Shares in treasury; therefore, the total number of Ordinary Shares carrying voting rights is 50,124,918.

The above figure of 50,124,918 may be used by shareholders as the denominator for the calculations by which they will determine if they are required to notify their interest, or a change to their interest, in the Company under the FCA's Disclosure Guidance and Transparency Rules.

This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014 (which forms part of domestic UK law pursuant to the European Union (Withdrawal) Act 2018). 

Rotala Plc	0121 322 2222
John Gunn, Chairman Simon Dunn, Chief Executive Kim Taylor, Group Finance Director
Shore Capital	020 7408 4090
Tom Griffiths / James Thomas / Michael McGloin (Corporate Advisory) Henry Willcocks (Corporate Broking)

About the business  

Rotala provides a range of transport solutions, ranging from local bus services under contract to local authorities, through to commercial bus routes. Rotala has operations at Heathrow Airport, in the West Midlands and in the North West. Operating companies are Diamond Bus Ltd, Diamond Bus (North West) Ltd, Hallmark Connections Ltd and Preston Bus Ltd.

 

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