25th May 2016 16:36
LONDON (Alliance News) - Greka Engineering & Technology Ltd on Wednesday said a company tied to its chairman and chief executive has purchased shares in the company less than one week after the company confirmed it plans to delist its shares from AIM.
GRECAP Ltd, in which Randeep Grewal is beneficially interested, purchased 28.8 million shares at a price of 0.8 pence on Wednesday, helping to push Grewal's total holding in Greka Engineering to 87.05%.
Greka Engineering shares closed down 5.9% to 0.8 pence per share on Wednesday.
Greka Engineering revealed late last month it was considering cancelling its shares from AIM but then confirmed earlier this month that it will hold an extraordinary general meeting on June 7 to put forward the proposal to shareholders, making Grewal's stake especially significant.
GRECAP purchased shares in Greka Engineering on Monday, buying 1.2 million shares at 0.8p, and also purchased another 14.5 million shares at 0.8p last Friday. Prior those two earlier transactions, Grewal held 76.3% of Greka Engineering.
The main reason for wanting to delist from AIM is costs, but Greka Engineering also noted the "lack of meaningful liquidity" and the "poor" performance of its shares since listing in 2013.
Grewal will still be in the London market even if Greka Engineering delists from AIM, as he also is the chairman and chief executive of both AIM-listed Greka Drilling Ltd and Main Market listing Green Dragon Gas Ltd.
By Joshua Warner; [email protected]; @JoshAlliance
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