Hellenic Carriers hopes to delist from the AIM market of the London Stock Exchange by April 20, if investors approve the delisting.
Shareholders will vote on whether the bulker operator should delist at the company’s next annual general meeting on April 12. A 75% majority is needed to approve the proposal, which was first mooted earlier this month in light of the $34m loss Hellenic made during its fiscal year 2015, compared to a $17m loss in 2014.
Trading of its ordinary shares on AIM would cease at the close of business on April 19, with the delisting effective from April 20, if approval is granted.
Hellenic said its controlling shareholders may offer to buy ordinary shares after the company delists, but “this has not been confirmed”.
The company’s board of directors said the proposed delisting is “fair and reasonable and in the best interests of the company and the shareholders” in a statement today.
“The primary objectives and perceived benefits of being quoted on a public market are to gain access to capital and create a liquid market in the company’s ordinary shares. If these objectives cannot be achieved efficiently and cost effectively, the board has a duty to reconsider the merits of a listing. The board has reached the view that the company does not enjoy any of these benefits,” the company said.
One of Hellenic’s directors, Apostolos Kontoyiannis, will be the company’s new non-executive director after the delisting, subject to his being re-elected as a director by the AGM. The other existing non-executive directors and chairman of the board will retire by rotation if the delisting goes ahead.
Hellenic operates a fleet comprising one panamax bulk carrier, two supramaxes and two kamsarmaxes.
