25th Apr 2014 12:17
LONDON (Alliance News) - Real estate company Dolphin Capital Investors Ltd Friday urged shareholders to vote against Itacare Capital Investments Ltd's proposed delisting of its shares from AIM.
Dolphin has a 10% stake in real estate investment business Itacare which has called a general meeting to approve the move. It will need the consent of 75% of Itacare's shareholders.
Earlier this month Itacare said the proposed delisting will remove certain costs and the administrative and regulatory burden associated with its AIM quotation. It also expects the delisting to help it make further cost savings whilst continuing to progress its "investment objective to realise a greater return from its remaining assets."
"Furthermore, the delisting will enable the company to maintain the confidentiality of sensitive information as the obligation to disclose such information to the public, to which the company is currently subject under the AIM rules for companies, will be removed," Itacare said at the time.
AIM-listed Dolphin, an investor in the residential resort sector in emerging markets, opposes the move on the grounds it believes that de-listing would be contrary to the interests of Itacare and its minority shareholders.
"[Dolphin] is urging all shareholders to vote against the delisting resolution with a view to casting at least 25% negative votes to prevent the delisting," it said in an open letter to shareholders on Friday.
The firm said it has a number of "serious legal and regulatory concerns" about the proposed delisting and other matters relating to the company stretching back into 2013 and is currently in discussion with its lawyers in order to ensure that the interests of all minority shareholders are protected.
The stock was trading at 38.00 pence Friday, down 0.50 pence or 1.3%.
By Anthony Tshibangu; [email protected]; @AnthonyAllNews
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