Proactiveinvestors recommends
Pdf

Business Control Solutions to exit AIM and go private

24th Nov 2009, 10:38 am Business Control Solutions to exit AIM and go private

Business Control Solutions Group PLC (AIM: BCT) is seeking shareholder approval to delist from AIM and re-register as a private company, roughly two months after flagging it was considering the merits of maintaining its AIM listing.

The provider of management consultancy services and operational control software to financial institutions is planning to launch a tender offer for 40 million shares at 1.25 pence each, which means that qualifying shareholders may tender up to 14.7 percent of their holding.

BCS has received irrevocable undertakings to vote in favour of delisting and going private from each of the directors and certain shareholders holding approximately 65 percent of the capital. The company has also received irrevocable undertakings not to accept the tender offer from each of the directors in respect of their entire holdings, representing approximately 56 percent.

BCS noted it has made progress against its strategic goals and yet its market capitalisation is significantly lower than when it raised additional funds to pursue its strategic goals in November 2006. It also suffers from a lack of liquidity for its ordinary shares and, in practical terms, a small free float and market capitalisation, which reduces demand.

Further, the costs associated with maintaining the AIM are high, approximately £200,000 per annum, and given the economic climate are becoming increasingly burdensome, it added.

No investment advice

The Company is a publisher and is not registered with or authorised by the Financial Services Authority (FSA). You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.