Manganese Bronze to switch to AIM

BLACK cab manufacturer Manganese Bronze has notified shareholders of its intention to transfer its quoted listing to the Alternative Investment Market (AIM).

The Coventry-based company, hit hard by falling sales, announced in its final results in March it intended switching some of its production to its Chinese partner Geely Group to reduce costs.

The company said the move would inevitably result in an increasing reliance on its joint venture with Geely in Shanghai, SLTI.

It said that given the importance of SLTI, in which Manganese has a non-controlling 48% shareholding, it had been necessary for the board to consider its ongoing compliance under its current listing requirements.

Manganese believes that the move to AIM is necessary as there is a risk that the company could by suspended by the UK Listing Authority as a result of not meeting requirements to have majority control of its assets.

There is also a requirement under its current listing for the company to have more than 25% if its ordinary share capital in public hands – something which could be at risk if a potential placing with the Geely Group goes ahead.

In a statement to the London Stock Exchange, Manganese said: “It is expected that the move to AIM will reduce the company’s regulatory workload and associated expense to a level more consistent with the company’s current size.

“The board believes that the move will have negligible impact on shareholders’ ability to trade Ordinary Shares, receive dividends and access information in relation to the company.”

Shareholder approval of the move is needed and the board has recommended them to agree to the re-listing at a general meeting at the company’s headquarters on May 13.