(Alliance News) - Quarto Group Inc on Thursday said it plans to stop trading on the London Main Market, asserting this is "in the best interests of the company".
The London-based illustrated book publisher will hold a special meeting on December 14 to seek shareholder approval for the de-listing of its shares.
Quarto shares were down 38% to 75.00 pence each in London near midday on Thursday. Earlier, they set a new 52-week low of 50.00p, having last traded - on Monday - at 120.00p.
Quarto said it has received commitments to vote in favour of the resolution to delist from holders of more than 72% of its shares.
Quarto said it had explored transferring its listing to London's AIM market in the past few years but said the benefits of delisting outweighed those of listing on another market in London. It listed these benefits as including a reduction in costs and the ability to close future acquisition more quickly.
Quarto said it intends to make a tender offer for shares, so that investors who wish to can cash out after the delisting.
In August, Quarto had reported that pretax profit fell 61% to USD2.6 million in the six months to June 30 from USD6.6 million a year prior, as revenue contracted by 16% to USD52.0 million from USD61.9 million. Back then, it said it expected to see the same challenges which have been impacting trade sales over the first half of 2023, but anticipated to see a more buoyant market as inflation was expected to ease in the UK and the US.
By Tom Budszus, Alliance News slot editor
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