RE: UT 1.394p15 May 2025 06:58
With 51.2% institutional ownership, institutions could influence a move to take Genedrive plc private, but they cannot unilaterally force it. Here’s why:
1. Delisting Rules (AIM Market)
Genedrive is listed on AIM, the London Stock Exchange’s market for smaller growth companies. AIM has relatively flexible delisting requirements, but the company must still follow a defined process:
• 75% shareholder approval is required in a general meeting to pass a resolution for voluntary delisting.
• A circular must be sent to shareholders explaining the rationale, and usually at least 20 business days’ notice is required.
So, institutions holding just over 50% can’t do it alone — they would need to secure support from other shareholders to reach the 75% threshold.
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2. Going Private (Buyout)
To take the company private (i.e. remove it from public ownership), institutions or a buyer would usually:
• Make a tender offer to all shareholders at a premium.
• Compulsory acquisition of remaining shares (squeeze-out) is only possible once 90%+ accept the offer under UK law (Companies Act 2006).
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Summary:
• No, institutions cannot force a delist or privatization with just 51.2%.
• Yes, they can strongly influence the process and potentially lead such a move — but they’d need backing from other shareholders or to acquire more shares