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(Alliance News) - BATM Advanced Communications Ltd on Thursday expressed its disappointment at index provider FTSE Russell's move to reassign BATM's nationality to Israel from the UK.
Wednesday's decision, published in the FTSE nationality review of companies, is likely to mean BATM will no longer be included in the FTSE UK Index Series. The networking technology and medical lab systems company has said it is in discussions with FTSE Russell about being granted an extension.
If an extension is not granted, BATM's nationality will be reassigned on March 21. BATM, while "puzzled" by the decision, clarified that it will continue to be listed on the premium segment of the London Main Market, as well as on the Tel Aviv Stock Exchange.
BATM's share price dropped 10% to 54.00 pence in London on Thursday morning.
"We are not the only company that has been denied this by virtue of our domicile and dual listing. A lack of pragmatism and blindness to the possibility of market disruption is fast becoming a deterrence for good foreign-domiciled companies to list on the London Stock Exchange, especially when other bourses do not have such draconian rules," said Chief Executive Officer Zvi Marom.
Back in August, Just Eat Takeaway.com NV was ousted from the FTSE 100 index, after its nationality was reassigned to the Netherlands in a similar exercise by FTSE Russell, which is owned by London Stock Exchange Group PLC.
"We hope the lawmakers look at this again and become welcoming to global companies who wish to give investors in index-linked funds in the UK as well as those in their own countries the opportunity to invest in them," Marom said.
The technology company also announced a share buyback of ordinary shares of up to 10% of its issued share capital to be funded from its cash reserves. Further details will be released in due course, before shareholders vote on the programme.
By Elizabeth Winter; elizabethwinter@alliancenews.com
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