Be very careful all8 Oct 2009 12:07
Background to the proposal for the Cancellation and the requisitioning of the EGM
The letter from Bateman B.V. included the following reasons why it considers that it is no longer in the Company's best interests to maintain its AIM quotation:
Over the last 12 months, the financial position of Bateman Litwin has deteriorated and the publicly quoted profile of the Group has disadvantaged it in securing appropriate banking facilities and in its commercial marketing activities;
As an unquoted company, Bateman Litwin would benefit from improved financial flexibility, allowing it to better manage its critical cash position; and
Management time, the legal and regulatory burden and direct costs associated with maintaining the Company's admission to trading on AIM is disproportionate to the benefits to the Company. This management time is needed elsewhere in the business to consolidate the turnaround and restructure the Company for the long term and the direct costs could be better utilised within the Group's operations.
BV effectively have 62% of the voting rights