Rangers to delist from the Stock Exchange next Tuesday
Thursday 2 April 2015 18:41, UK
Rangers have announced they have failed to appoint a new nominated advisor and will delist from the Stock Exchange on Tuesday.
Previous Nomad WH Ireland carried out their threat to quit just hours before Rangers' EGM on March 6 which saw the Dave King-led consortium oust the Ibrox board and assume control of the club.
Prospective chairman King, who is awaiting approval from football and financial authorities to take his seat on the board, claimed at the meeting that maintaining an AIM listing was not imperative for the Championship club.
At the time, Rangers claimed delisting could improve their financial performance, firstly by freeing up senior management staff from spending time maintaining the listing and also saving money on professional fees associated with the listing.
But the club remain in talks over securing an alternative trading platform, reporting positive talks with the ISDX platform where oldco Rangers' shares were traded prior to their liquidation.
In a statement, the Rangers board told the Alternative Investment Market that the move to delist was “simply the result of the well documented failings in corporate governance and management of those who previously controlled the company”.
The statement released also said that there was no reason to suggest that delisting would “adversely impact on the value of the company's shares or on the company's financial condition or prospects.”
Trading in shares has been suspended since last month but a prospective Nomad carried out due diligence and concluded that existing and proposed new directors would be “Fit and Proper”.
The statement read: “On 4 March 2015 the Company announced the suspension of trading on AIM following the resignation of its Nominated Adviser ("Nomad"), WH Ireland.
"The resignation was unexpected, as WH Ireland had previously indicated that it would assist the company in effecting a smooth handover to a new Nomad following the general meeting on 6 March.
“During the course of the last month, the new board of directors has been working hard, to a tight timescale, with a prospective new Nomad to complete an appointment. Unfortunately, it has become apparent that this will not be possible.
'Fit and proper'
“There are two aspects to the due diligence that Nomads have to carry out before they accept appointment. Firstly, they have to be satisfied with the "fit and proper" status of the board of directors of the company seeking to make the appointment.
"Secondly, they have to be satisfied that there are no reputational and/or historical issues with the profile and nature of the company seeking to appoint which might adversely impact on the Nomad.
“The prospective Nomad completed its checks on the "fit and proper" status of the existing and the proposed additional director of the company and confirmed to the company that it was satisfied on both fronts.
“It then carried out its own assessment of the company's profile over the last several years and the issues which had been encountered.
"We understand this process involved discussions with the Exchange. We were advised that, following this process, the prospective Nomad was unable to take up appointment. We also understand that any alternative Nomad is liable to encounter similar difficulties and therefore the company requires to terminate its listing on AIM.
“This is no reflection on the current board or on the financial condition or prospects of the company. It is simply the result of the well documented failings in corporate governance and management of those who previously controlled the company.
"The Company understands that this resulted in AIM receiving more complaints about the company than any other company on its Exchange over the last year. We appreciate and understand the difficulties this presented for AIM.
“It is expected that cessation of the listing of the company's shares on AIM will become effective from opening of business on 7 April 2015.
"There is no reason why delisting should adversely impact on the value of the company's shares or on the company's financial condition or prospects.
"Indeed, we set out below a number of reasons why delisting may improve the company's financial performance, delivering additional value to shareholders. Nor does the cessation of listing on AIM prevent shareholders transferring shares to each other privately. What it does effect is the ability of shareholders to transfer shares on a public platform.
"Accordingly the directors of the company are in discussions designed to secure an alternative trading facility for the company's shareholders. One option would be for the company to list its shares on ISDX.
"ISDX is the successor to the Plus platform (where The Rangers Football Club plc's shares were traded in the past) and offers a quotes driven market for shares. The shares of Arsenal are listed on ISDX. The discussions are proceeding positively and both of the platforms with which the company is in discussion have indicated that they are keen to see the company admitted."
