Galaxy27 May 2009 11:45
I have seen a few companies De-list but it is not something I have generally seen any profit from. Partly out of neither seeing it out or having enough in to justify chasing things up.
First of all you mentioned the Circular -
Can you be sure of even recieving this if you purchase today! Also will it tell you what you really want to know - personally I would not care to much for the reasons. What I would like to know is what value I can get from my investment. A tender offer or special dividend maybe possible but unless I see that in writing I am not happy. Whilst I understand Dividends as anyone else does, I do not understand the mechanics behind a tender offer. Would love to know how Halifax would administer this and whether this would enable full value realisation. Of course that is dependent on whether there is any value to be derived from this. Shareholders maybe faced with the fait-accompli of do or die (Or rather to accept things as they stand).
There has been occasions where a proposal to De-list has been rejected. Delek is an interesting example of this - however in this case the majority shareholder pulled rank and now there seems little indication of shareholders seeing any value. This is despite in the case of Delek a NAV of of around 130 compared to a share price of 45.
As for re-registering as a private company. In the case of Delek I felt there had to be profit there somewhere. However I cannot fathom how value could be derived from this!