MWB Business Exchange is to be de-listed from the junior market as parent company, MWB Group, takes control of more than 75% of its shares.
A statement from Richard Balfour Lynn’s group, which also owns the Hotel du Vin and Malmaison hotels, said it plans to consolidate control of the AIM-listed serviced office provider now that its holding has risen to 75.22%.
The move comes after the group walked away from a potential takeover of the serviced office provider on 14 December “in the face of opposition from one of Business Exchange’s significant shareholders”.
It said during this process it had indicated to the independent Business Exchange directors that if its proposals did not become effective it intended to requisition a meeting of Business Exchange shareholders to get approval for the cancellation of trading of its shares on AIM.
The independent directors of Business Exchange told shareholders they did not see any advantage in being listed as the shares were illiquid, leading to the announcement by MWB today that along with its advisers it will “now examine ways in which to fulfil its previously stated intention of de-listing Business Exchange”.
It said that it recognises the importance of safeguarding the interests of minority shareholders through the de-listing process.
It added: “De-listing will facilitate further significant improvements to the group’s overall financial position as well as lower central and transaction costs for all Business Exchange shareholders.
“The board of MWB believes that there will be substantial improvements in the financial health of the company from further cost savings across the group, by de-listing Business Exchange, and with the improved ability to negotiate banking terms” it said.
It also said that consolidating control of Business Exchange will provide “a number of benefits for all MWB shareholders, including the ability to further reduce overhead costs across the group, the strengthening of its ability to negotiate with external lenders, and the facilitating of any ultimate disposal of Business Exchange”.
“Following a review by the board of MWB, annualised savings in central overheads of more than £700,000 have already been achieved, representing a 23% reduction, and further cost saving measures are being reviewed” it added.
MWB Chairman Eric Sanderson said: “This will represent a further significant step forward in the company’s continuing endeavours to cut costs, improve its banking terms and generate real value for shareholders.
“We also believe that a de-listing of Business Exchange will be in the best interests of all shareholders.”
bridget.oconnell@estatesgazette.com
