Wolstenholme Rink (WR) has recommended that its shareholders accept a take-over bid which will see the public company divided into two separate private firms.
The bid is being backed by investment vehicle Rutland Trust PLC and the 600p per share offer values the existing share capital of WR at 48.7m. If successful, Rutland will be the majority shareholder and will oversee the restructuring of the group into two separate firms - one specialising in pigments and coatings (and likely to retain the Wolstenholme Rink name), and the Openshaw Group, focusing on printing supplies.
WR non-executive chairman Rodger Booth, said: "We consider it to be a fair price. Although its not strictly an MBO as Rutland are buying the majority of the business and will have directors on both company boards."
Openshaw managing director David Coltart would take on the role of chief executive, and be joined on the board by fellow directors Tony Halker and Richard Payne. Halker had been set to leave Openshaw on completion of his contract, but will now remain with the business. The directors will control 15% of the new company, with Rutland investors owning the rest.
The new group would encompass Openshaw, Wolstenholme Graphics Industries (WGI), Faust and Trans Carrier Services.
Coltart said: "We wont be changing any of our current producers or suppliers, but we will be investing heavily in customer service." Openshaw currently supplies Xeikon, ECRM and Agfa equipment.
Under the plans 60% of WR inks wing would be owned by Rutland, Paul Rink and family are among the other proposed shareholders. Rutland has already acquired, or has irrecoverable undertakings of, 49.5% of the issued share capital of WR. Shareholders have been sent the offer and have until the middle of August to reply.
Booth said: "Wolstenholme has traditionally had a broad range of activities. By splitting them into two separate companies Rutland will be able to focus and develop the two halves."
Fellow printing equipment company Litho Supplies, has had 4.55% of its shares bought by new investment trust Advance Value Realisation, which has also purchased a 8.32% stake in Inveresk.
Story by John Davies