13th Jun 2014 14:54
LONDON (Alliance News) - Talvivaara Mining Company PLC Friday said it plans to cease trading on the Main Market of the London Stock Exchange as it seeks to reduce the costs associated with the listing.
Talviaara said there is no significant benefit in maintaining its London listing, given the cost of potential material capital market transactions and other transactions in what it called a "distressed financial situation" and based on the fact that around 79% of its shares traded on the official list of the Helsinki Stock Exchange between May and April.
"The company does not anticipate that such delisting will adversely affect its shareholders other investors, since the shares will continue to be listed and tradable on the official list of the Helsinki Stock Exchange," Talvivaara said in a statement.
The company is going through a court sanctioned restructuring in Finland and is seeking new long-term financing. It said in January that it planned to reorganise its operations to save cash after getting into financial difficulty after a sharp decline in the price of nickel early in 2013, and after its lenders declined to finance a restructuring on its own.
Late last month, it said its first-quarter pretax loss narrowed to EUR17.1 million, from an EUR31.7 million loss a year earlier, as it produced more nickel and zinc than it has since the third quarter of 2012.
The firm expects delisting and cancellation of its shares on or around July 14.
By Anthony Tshibangu; [email protected];
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