LONDON (Alliance News) - Marwyn Management Partners PLC on Thursday said it has proposed cancelling its listing on AIM, saying it believes it will be better able to manage its investment in French wellington boot maker Le Chameau as an unlisted entity.
The luxury goods investment company said Marwyn Value Investors Ltd, a UK-listed investor which owns 90% of Marwyn Management Partners, has agreed to acquire the other shares it does not own in the company at 2.00 pence per share. Marwyn Management Partners shares were flat at 2.00p on Thursday.
Marwyn Management said the delayed growth at Chameau, caused by a weaker trading backdrop and recent organisational changes in the business, has led its board to conclude the rationale for remaining a listed entity has been "significantly undermined".
"The board further considers that greater shareholder value will be derived by operating the group's business off-market for the immediate future," Marwyn Management said.
It said trading volumes in its shares are "very low" and said given current market conditions, it is unlikely it will be able to raise money from shareholders other than Marwyn Value Investors.
Given the low trading volumes, the costs associated with maintaining an AIM listing are "disproportionately high when compared to the benefits", and those funds would be better deployed elsewhere in the business.
The plans will be put to shareholders at a meeting on August 10, and the company anticipates its shares will be cancelled from trading on AIM after the close on August 17.
By Sam Unsted; samunsted@alliancenews.com; @SamUAtAlliance
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Marwyn Val. (MVI)