29th Oct 2019 09:57
(Alliance News) - Cabot Energy PLC said Tuesday it is to cancel its listing on London's AIM market and become a private company.
The oil and gas exploration firm said the decision was made "following a careful review of the benefits and drawbacks of being an AIM quoted company". The board concluded the cancellation of admission "is in the best interests of both shareholders and the company."
Cabot intends to seek shareholder approval to cancel its AIM admission at a general meeting in November.
The board, the firm said, believes Cabot will struggle to attract "material investment from third-party equity investors" in current market conditions.
"The board believes this is largely due to historical challenges faced by the company as well as a drop in investment 'appetite' in oil and gas companies globally, specifically fossil fuels," it said.
Cabot also wants to cut costs, and blamed a limited free float for low liquidity of shares.
Cabot also said it will not be going ahead with an open offer announced at the end of September, as costs and transaction fees will offset any funds raised.
Cabot shares were down 47% in London at 2.00 pence each on Tuesday.
By Loreta Juodagalvyte; [email protected]
Copyright 2019 Alliance News Limited. All Rights Reserved.