Capital Lease Aviation (LON:CLA) is to de-list from AIM subject to AGM approval.
The company is a subsidiary of plane leasing firm Avation (LON:AVAP), which has progressively increased its stake to about 97% from 62% over the last 18 months.
“The rationale for the delisting is to reduce costs which have become disproportionate in relation to the free float,” broker WH Ireland said.
It added that it expects Avation to buy Capital Lease outright sometime in the next year.
“The move may in due course enable Avation to present a more transparent picture to investors and bondholders thus allowing better access to the markets as it continues along its steady growth trajectory”.
Shares in Capital Lease dropped 16% to 19.6p while Avation nudged 2.4% lower to 143p.