Superyacht services provider GYG PLC (AIM:GYG) shares plummeted 31% to 21.8p after it announced it intends to go private.
This was despite the superyacht painting, supply and maintenance company saying trading in the first half was “in line with market expectations”, its EBITDA performance was “strong” and having recently said its order book was at record levels.
Shareholders will be sent a circular setting out the background and reasons for the proposed cancellation and re-registration, GYG in a statement.
It attributed the delisting to "the impact of the current geopolitical situation, the compatibility of the requirements for transparency within public markets and client discretion, the public market share trading and valuation volatility of the company and the increasing costs of maintaining a public listing".
Following Russia's invasion of Ukraine and the ensuing sanctions from the West on Russian oligarchs and other businesspeople, the company said in March its exposure to Russian superyacht ownership was in line with the global market, which was estimated at 7-10% of the total.
However, today's statement revealed that revenue for the first six months of 2022 was similar to the first half of 2021.
The date of a general meeting, where investors will vote against or in favour of the delisting proposal will be shared shortly, with the cancellation resolution requiring at least 75% approval.