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Chrome producer Afarak mulls Helsinki de-listing

“The board still concludes, as was the case in spring 2018, that in the long run it is not economically viable for the company and its shareholders to have a company domiciled in Finland and listed in Helsinki and London”
helsinki
Afarak will make a decision on its Helsinki listing once the buyback is completed

Chrome producer Afarak Group PLC (LON:AFRK) is considering de-listing from the Nasdaq Helsinki stock exchange once it has completed a buyback of some of its shares.

Major shareholder LNS had argued for some time that because of liquidity constraints, particularly in the local Helsinki market where Afarak is based, the company should offer to buy out investors.

READ: Afarak updates investors as Helsinki rules on shareholder case

The share buyback will be limited to €28.4mln – although the board can waive this if they want – and investors are not being forced to sell if they do not want to.

As for timings, Afarak now expects that it will open its offer up to shareholders in late May once it has published its first-quarter results.

That means any buybacks will have been executed by the time the company holds its annual general meeting on 25 June.

Once the share buyback is completed, Afarak said it will look at de-listing in Helsinki and possibly changing the country in which it is domiciled, currently Finland.

“The board still concludes, as was the case in spring 2018, that in the long run it is not economically viable for the company and its shareholders to have a company domiciled in Finland and listed in Helsinki and London,” read Thursday’s statement.

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Afarak Group PLC Timeline

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