(Alliance News) - United Carpets Group PLC on Friday said it has proposed cancelling its AIM trading status to its shareholders and plans to re-register as a private limited company.
The retailer of carpet and floor covering said this is because the directors believe the company "is not of a sufficient scale to attract interest from institutional and other investors and consequently suffers from a lack of liquidity", and that the considerable costs and management time of AIM trading are too high. De-listing is in the best interests of the company and its shareholders, it noted.
In order to de-list and re-register as a private company, the company said a concert party consisting of United Carpets Chief Executive Paul Eyre and Commercial Director Deborah Grayson among others will propose a tender offer to buy 29 million shares, which represents 36% of the company's current share capital at 6.25 pence per share.
Eyre and Grayson, who with the rest of the concert party own 64.7% of the company, said they have "irrevocably committed not to accept the tender offer in respect of 51 million shares, which will afford shareholders the opportunity to tender their entire interest in the shares for cash should they so choose." Depending on the level of take-up, Eyre and Grayson could come to hold 97.42% of the company's issued share capital.
Shares in United Carpets were up 19% at 6.25 pence in London on Friday.
By Zoe Wickens; zoewickens@alliancenews.com
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