23 May 2011 13:00
Proposed cancellation of listing of Ordinary Shares on the Official List and of trading on London Stock Exchange plc, Admission to trading on AIM and Notice of General Meeting
The board of The 600 Group PLC ("600 Group" or "the Company") announce that it is proposing to cancel the admission of the Company's Ordinary shares from the Official List and to trading on the London Stock Exchange's Main Market and to apply for the admission of the Company's Ordinary Shares to trading on AIM.
A copy of the Circular, Notice of General Meeting and Proxy Form have been posted to shareholders today and copies will be made available on the Company website www.600group.com.
For further information, please contact: | |
The 600 Group PLC | Tel: 01924 415 000 |
David Norman, Chief Executive | |
Martyn Wakeman, Finance Director | |
Cadogan PR | Tel: 07771713608 |
Alex Walters | Tel: 020 7839 9260 |
Emma Wigan | |
finnCap | Tel: 020 7600 1658 |
Sarah Wharry Ben Thompson |
Introduction
The Company is proposing to cancel the admission of the Company's Ordinary Shares from the Official List and to trading on the London Stock Exchange's Main Market (the "Cancellation") and to apply for the admission of the Company's Ordinary Shares to trading on AIM ("Admission"). Under the Listing Rules, the Cancellation can be effected by the Company only after approval by a resolution of Shareholders in General Meeting, passed by 75% of those Shareholders who attend and vote at the meeting, and the expiration of a period of not less than 20 Business Days from the date of the Shareholder approval.
Background to and reasons for the Proposal
The Company's strategy is to grow organically and by selective acquisitions consistent with a diversified industrial strategy. The Group announced the acquisition of a machine tool manufacturing facility in Poland on 2 November 2010 which the Directors believe will prove to be a transformational transaction for the Group and will enable the Company to reduce delivery times and further improve its working capital. The Directors believe that AIM is a market more appropriate for a company of 600 Group's size, offering the advantage of greater flexibility, particularly with regard to corporate transactions and related costs which enable the strategy to be executed in a more efficient manner.
If the Cancellation is approved by Shareholders, the Board intends to operate the Company's business in the same manner, and with the same objectives, as at present.
Irrevocable Undertakings
Each of the Directors and Haddeo Partners LLP have given irrevocable undertakings to vote in favour of the Resolution in respect of their own beneficial holdings of Ordinary Shares, totalling 16,311,438 Ordinary Shares, representing, in aggregate, 25.56 per cent. of the Ordinary Shares.
General Meeting
The Resolution will be proposed to approve the Cancellation at the General Meeting, to be held at the 600 House, Landmark Court, Revie Road, Leeds, LS11 8JTat 10.00am on 15 June 2011.