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York mounts an early share buyout at CSL Truck Hire

11th February 1988
Page 27
Page 27, 11th February 1988 — York mounts an early share buyout at CSL Truck Hire
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Which of the following most accurately describes the problem?

• York Mount Group is to buy the remaining preference shares in its subsidiary CSL Truck and Trailer Hire, some twenty months earlier than it had planned under the terms of an "earn-out agreement" with the company.

The group bought the ordinary share capital of CSL in 1986, and says the company's performance has been so good since then that it would be best for its shareholders to aquire the rest of it now. York Mount's directors will put the proposal to their shareholders on 29 February.

CSL was started in 1980 with 27 trailers: it now operates 1,600, along with 100 tractor units. Following the shares deal Jeff Chapman and Liam Condon, who established CSL, become joint chief executives of the new company, and David Callear, managing director of York Mount, becomes managing director (development). Another CSL founder Gerald Priestner continues as non-exective director.