Ross loses in bid to take Cosalt private
DAVID Ross, the colourful chairman of safety gear supplier Cosalt, said last night he was preparing for life running a public company after failing to win sufficient backing for a de-listing.
The multimillionaire investor just missed out on the 75 per cent investor support needed to go private, which would save an estimated £500,000 in listing costs.
Ross, whose grandfather founded Cosalt a century ago, won control of the Grimsby firm last month but yesterday he and his allies won only 73 per cent shareholder backing for the motion to go private.
After the meeting in Cosalt’s home town Ross said: “Given the current position of the business, the board and I believe that the company would be better off as a private enterprise without the associated high costs of being a listed company. However, the decision from today’s general meeting means the company will continue to be listed and as a board we will plan accordingly.”
Cosalt said it is in talks with “potential providers” over the extra cash it needs for working capital. Net debt was £18.7m on 9 February.
Ross, who founded Carphone Warehouse with his school friend Charles Dunstone in 1989, first joined Cosalt’s board in 2005.
He resigned in 2008, however, after he was found to have pledged shares of several companies as collateral against personal loans. The Financial Services Authority cleared him of wrongdoing in January 2009, allowing him to return to Cosalt’s board.
Long-term institutional investors in Cosalt have seen the value of their shares plummet over the last three years.
David Ross, the Cosalt chairman, just missed out on the 75 per cent support needed to take the firm private