LONDON (Alliance News) - Castleton Technology PLC on Wednesday said it will propose a capital reorganisation at its forthcoming annual general meeting to be held in late October.
Castleton said the 9,500 shareholders it has on its books are driving up overheads, caused by the need to produce annual accounts and the associated registrar's costs. It said over 95% of its shareholders hold minimal stakes in the company worth less than GBP100.
"For a company of Castleton's size, this represents a disproportionately large number of small shareholdings. Accordingly, the board proposes to consolidate the shareholdings in the company through a capital reorganisation," it said.
It proposes consolidating every 160 shares into one new share. Unless a shareholding therefore equals or exceeds 160 shares, then shareholders will be left with a fractional entitlement to the new shares. Any fractions will be aggregated and sold in the market on the shareholders' behalf, with net proceeds returned to them.
The board further proposes that immediately thereafter, the ordinary share capital of the company is reorganised by sub-dividing each newly created share into eight new ordinary shares.
Castleton currently has 1.49 billion shares in issue.
Castleton shares closed up 0.2% to 3.03 pence per share on Wednesday.
By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance
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