14th Aug 2006 13:00
Charlton Athletic PLC14 August 2006 CHARLTON ATHLETIC PLC 14th August 2006 PROPOSED CANCELLATION OF AIM ADMISSION, PROPOSED AMENDMENTS TO ARTICLES ANDNOTICE OF EXTRAORDINARY GENERAL MEETING The board of Charlton Athletic PLC (the "Company") announces that it isrecommending to shareholders the cancellation of admission of the Company'sordinary shares to trading on AIM. The Company is sending a circular toshareholders convening an Extraordinary General Meeting on 6th September 2006 toallow shareholders to vote on the proposed resolutions. If these proposedresolutions are approved by shareholders it is intended to effect thecancellation on or about the 14th September 2006. The text of the Chairman's letter enclosed in the circular to shareholders isappended below. For further information please contact: Charlton Athletic PLCNigel Capelin (Deputy Chief Executive) - 020 8333 4000 Teather & GreenwoodMichael Seabrook (Sales) / Tom Hulme (Corporate Finance) - 020 7426 9000 Dear Shareholder Cancellation of Admission of Securities to AIM In March 1997 the Company's shares were admitted to the Alternative InvestmentMarket ("AIM") of the London Stock Exchange, raising £6m from directors,supporters and institutional investors to develop the west stand at The Valleyand to provide working capital. Subsequently, your board and other shareholdershave invested a further £22m through the issue of additional ordinary sharesthat has enabled the Company to develop further The Valley stadium and otherinfrastructure assets. This investment has diluted institutional holdings toapproximately 4% of the issued share capital. Your board now feels that there islittle further prospect of raising material funds through AIM and believes thatthe ongoing cost and administrative burden of maintaining an AIM quotationoutweighs the benefit gained from it. Therefore, your board has decided to seekthe cancellation of admission of the Company's ordinary shares to trading onAIM. Following the cancellation of admission, the Company proposes to establish anoff market facility to be administered by the Company to allow shares in theCompany to be bought and sold. The London Stock Exchange has been notified of the Company's wish to canceladmission, with a preferred cancellation date of 14th September 2006, but inaccordance with AIM Rule 41 such cancellation is subject to the consent of themembers of the Company. In order to effect the cancellation a specialresolution is required to be passed at an Extraordinary General Meeting ("EGM")of the Company. For a special resolution to be passed a 75% majority of thoseattending the EGM, either in person or by proxy, must vote in favour of theresolution. I draw your attention to the resolution detailed in the attachedNotice of EGM. The EGM is convened for 11.00 am on Wednesday, 6th September2006 at The Valley, Floyd Road, London SE7 8BL. Amendments to the Articles of Association On the basis that the Company's ordinary shares cease to be admitted to AIM,certain amendments need to be made to the Articles of Association to reflectthis. The attached Notice of EGM sets out those amendments in detail. Action to be taken I further highlight the notes to the Notice of the EGM and the enclosed Form ofProxy which, whether or not you propose to attend the meeting, you are urged tocomplete and return to the Company's Registrars, Capita Registrars (Proxies),P.O. Box 25, Beckenham, Kent BR3 4TU, so as to arrive not less than 48 hoursbefore the time appointed for the holding of the EGM. Recommendation The Directors believe that the cancellation of the admission to trading on AIMis in the best interests of the Company and unanimously recommend toshareholders to vote in favour of the resolutions to be proposed at the EGM.Your Board, which controls the voting rights in respect of 65.5% of the issuedordinary share capital of the Company, intends to vote in favour of theresolutions. Yours faithfully Richard Murray Chairman END This information is provided by RNS The company news service from the London Stock ExchangeRelated Shares:
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