LONDON (Alliance News) - The board of Atlantic Coal PLC on Monday recommended that shareholders vote in favour of resolutions proposing its de-listing from AIM at an upcoming general meeting, saying it is in the best interests of the company to do so in light of a potential acquisition opportunity.
The company's shares were suspended from trading on AIM on Monday. Atlantic Coal said this was due to the company considering the potential acquisition of a company with anthracite mining operations in Pennsylvania, which would be deemed as a reverse takeover under AIM market rules. Atlantic Coal didn't name the potential acquisition.
Whilst the board said it currently believes this acquisition is "in the best interests of the company", it does not consider the "significant expense and timeline associated with a reverse takeover to represent an efficient or cost effective way for Atlantic Coal to pursue its acquisition strategy".
Earlier this month the company had received a requisition from 7.7% shareholder Stuart James Thomas, which called for a general meeting for shareholders to vote on both the cancellation of the company's trading on AIM and for the company to change its name to Atlantic Carbon Group.
The board of the company said Monday that after "careful consideration" it had decided that it was in the best interests of the company and shareholders as a whole for its trading on AIM to be cancelled, and thus, urged shareholders to vote in favour of the resolutions at the general meeting.
This meeting its scheduled for January 11.
By Hana Stewart-Smith; hanassmith@alliancenews.com; @HanaSSAllNews
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