Coventry-based specialist chemicals group, Norman Hay (LON:HNN) intends to delist from London’s AIM market, as it believes it would no longer benefit from its continued admission and it is confident that the £90,000pa costs associated with its listing “could be better used in running the business”.
“The directors believe that the company will be able to utilise the costs saved and the significant amount of senior management time entailed in maintaining admission towards growing the business for the benefit of shareholders”.
On the London Stock Exchange, Norman Hay’s shares fell over 20% after the announcement, with investors selling on the liquid exchange while they still can. The company proposes to establish a ‘matched bargain service’, after the de-listing with buyers and sellers instructing the company of their intentions, leaving the company to match up investors.
The company will now convene a seneral meeting for shareholders to vote on the proposal. According to Norman Hay, it already has irrevocable undertakings, totalling 8.1m shares (55.03%) and also a letter of intent (LOI), representing just over 1.5m shares (10.49%), to vote in favour of the delisting.
With 75% of the vote required to carry the resolution the company only needs a further 10% of the voting rights to delist from AIM.