(Alliance News) - Ashmore Global Opportunities Ltd said Tuesday it is delaying the realisation of its investment in AEI Inc but is brining forward its vote on delisting from the London Stock Exchange.
Ashmore Global is currently in the process of a managed wind-down, and has only has a holding in AEI and a number of smaller fund investments managed by the company's investment manager, which include a further indirect interest in AEI.
"In recent months, the company's investment manager has had discussions with third parties regarding the realisation of its investment in AEI, with the objective of the directors being in a position to place the company into liquidation following that sale," Ashmore Global said.
The company continued: "This outcome would also have resulted in the cancellation of the admission of the company's shares to listing on the official list of the UK Listing Authority and to trading on the Main Market of the London Stock Exchange, upon the commencement of the liquidation of the company."
However, Ashmore Global said the Covid-19 pandemic has "reduced the likelihood" AEI can be sold on "acceptable terms" in the short to medium term.
"The directors continue to be of the opinion that it is in the best interests of the company, and its shareholders, for the realisation of the investment in AEI to be achieved by the company's investment manager, overseen by its directors, rather than by a liquidator," the company said.
As a result, Ashmore Global believes it is not "appropriate" to formally wind up the company at the moment.
The company has also decided - due to the "considerable costs" - that is no longer within the shareholder's interests to remain a listed company.
The company said: "The considerable costs of maintaining the company's listed company status are increasingly disproportionate to the value of the company's portfolio, and there are identifiable cost savings that can be achieved by a cancellation of the listing."
Ashmore Global will bring forward proposals to delist "in the coming weeks".
"The company's status as a Guernsey-regulated investment fund would continue notwithstanding such delisting and the Company's objective would remain the orderly disposal of AEI, as well as the remaining fund investments, as soon as sensible. Consideration will be given to appointing a liquidator, and the commencement of the formal winding up of the Company, following the disposal of AEI," the company added.
By Paul McGowan; paulmcgowan@alliancenews.com
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