Shoprite plans to leave PLUS

ISLE of Man-based retailer Shoprite has become the latest firm to announce its intention to delist from the junior PLUS market.

The firm, which last week revealed a pre-tax profit of £528,000 on sales of £72.5m in the year to January 1, 2011, has said that “general investor interest in smaller listed companies has declined considerably in recent years”.

It also said that attempts to raise funds through the market were unlikely to be successful, and that the money spent on the compliance costs of a listing would be better used on investing in its stores”.

It announced this morning that if a special resolution (which requires the support of 75% of shareholders) were passed at its AGM on July 1, it would offer to buy back up to 30% of its shares, giving an exit route to minority shareholders.

“A further announcement, including the key terms of the buyback and a definitive timetable, will be made after the AGM,” the company said in a statement.

The company has said that shareholders who wish to retain their investment after a delisting will be given access to a “matched bargain trading facility” so they can continue to trade in the company’s shares if they require.