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Call Sign looks at the ‘old enemy’ and their plans to
change the face of the radio taxi industry…
Few London Taxi drivers will have heard of Brian McBride and his family’s
company, Cleveland Yellow Cab until very recently when it was announced that
Mr McBride had made an offer from his West 3rd Street office for a minority
stake holding in Radio Taxis (London).
Still known as Mountview to many within the trade, the offer has
been put to drivers by RTL Chairman Geoffrey Riesel and his Board and the
trade awaits with baited breath to see whether Dial-a-Cab are soon to become
the only one of the three major circuits to still remain as a mutual trading
organisation.
The one major difference from the ill-fated Sovereign offer to DaC,
is that Cleveland Yellow are offering to take just 26% of the shares
following demutualisation, leaving majority control with the shareholders,
who will come from current subscribers and staff. |
WILL MOUNTVIEW CROSS THE DIVIDE? |
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Will Geoffrey Riesel lead RTL into demutilisation?
If RTL drivers vote to demutualise and accept Brian
McBride’s offer, then they would share the remaining 74% of shares and
receive around 1000 each, plus a £1,100 payout (including their £250 bond).
If successful, it is anticipated that the deal would help raise £10m to
assist further expansion, probably into the courier and shuttle bus industry
in addition to their Taxi and PH fleets.
If the deal goes ahead, Brian McBride would personally invest £2m
in equity and £1.5m in loan reserves. According to Geoffrey Riesel, to
prevent the new company
attracting outside takeover offers, an internal market would be set up
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Possible buyer of RTL - Brian Mcbride, owner of
Cleveland Yellow Cab. for share
trading. This means that you can only sell your shares back into the
company. Mr Riesel added:
"When RTL members retire from the circuit they get nothing, but
this deal means they will now be able to build up a valuable nest egg as a
result of their shareholdings." For a change of status to
take place, at least 75% of drivers must support the demutualisation
proposal in a ballot at an EGM on 16 May. If successful, the second vote on
whether to accept the offer would take place. Interesting times indeed… |
