After considering the long term growth plans for Optare, its board has decided to de-list from the London Stock Exchange’s Alternative Investment Market (AIM).
Optare plc announced on April 30, 2015 that it will be sending a circular to shareholders containing a notice convening a General Meeting (GM) of the company to seek shareholders’ approval to cancel the admission of the company’s ordinary shares of 0.1p each to trading on the London Stock Exchange’s AIM.
A recent review of the ordinary shares currently being traded on AIM by the directors – which reportedly included consultation with the company’s advisers and its major shareholder, Ashok Leyland – concluded that it is in the overall interests of the company and its shareholders if the admission of the Ordinary Shares to trading on AIM is cancelled.
Ashok Leyland holds an interest in ordinary shares representing 75.1%. Therefore, it is expected that the Resolution to approve the cancellation will be passed at the GM.
Optare’s official statement confirms: “Delisting from AIM is seen as a positive step towards increasing Optare’s competitive advantage. There are significant costs associated with maintaining a quotation on AIM. The board of directors believes these costs outweigh the benefits and that these funds would be better deployed to support Optare’s investment in product support and future technology as part of its growth strategy.
“Ashok Leyland part of the Hinduja Group will remain the major shareholder and continue to support the Company in its growth strategy.
“Optare remains committed to delivering the latest environmental and technological advancements in passenger transport to our customers.”
The expected last day for dealings in Ordinary Shares on AIM is June 1, 2015.
