Norman Hay announces plans to delist
COVENTRY-based specialist chemicals group, Norman Hay has announced its intention to delist from the Alternative Investment Market (AIM).
Subject to shareholder approval, the delisting will take effect on September 8.
Directors of the business said they believed the annual costs of maintaining an AIM listing could be better spent elsewhere.
In a statement, the company said: “The directors believe that the company will not benefit from its continued admission to trading on AIM. The directors consider AIM to be a drain on management time and the ongoing costs and regulatory requirements associated with maintaining the company’s listing outweigh any other potential benefits.
“The current annual costs of the company’s shares being admitted to trading on AIM total approximately £90,000 per annum, which the directors are confident 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.”
The directors added that they did not believe the company would be able to access funds from the issue of equity capital or use shares to effect acquisitions.
They said if the delisting was approved, the company would focus on delivering long term value to shareholders.
The company intends, as soon as possible following the delisting, to make arrangements for shareholders to trade their Ordinary Shares.
The company will make available a new matched bargain service. Under this facility, shareholders or people wishing to acquire Ordinary Shares will inform the company they are prepared to buy or sell at an agreed price. In the event the order can be matched with an opposite sell or buy instruction, both parties will be contacted and then the order introduced.
The board said the proposal to delist had the support of shareholders representing 55.5% of the issued share capital.
The resolution will be put to shareholders at a General Meeting to be held at the company’s head office in Godiva Place on August 31.
