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Leeds Group PLC on Tuesday proposed to call time on its AIM listing, prior to the end of a six-month countdown which would have seen the shares cancelled from London’s junior market. The company, now a cash shell, sold its main subsidiary, Hemmers-Itex Textil Import Export GmbH, in March. Following the sale, AIM rules designated the former textile distributor a cash shell given ‘it no longer had any substantial trading activities’. Leeds had until September 27 to make an acquisition or be re-admitted to AIM as an investing company, in which case the firm would have needed to raise at least £6 million. Leeds failed to meet either requirement and was suspended from trading on September 30. AIM rules will see Leeds shares automatically cancelled six months from the start of its its suspension. Leeds has opted for a pre-emptive exit from the public market and has notified the London Stock Exchange of its proposal. Leeds shareholders will vote on the proposed cancellation and re-registration as a private company at an extraordinary general meeting in Manchester on December 11. The resolutions must be approved by not less than 75% of shareholders, in which case, cancellation will come into effect on December 19. Prior to Tuesday’s proposal, Leeds’ directors reviewed the firm’s small capital base, lack of liquidity and activities, which have been limited to property ownership and rental since the sale of Hemmers. Leeds retained three commercial sites in Germany through another of its subsidiaries, Leeds Group Nordhorn Property GmbH. Hemmers has continued to rent these sites, but has given notice on one property, effective November 30. Leeds shares were last quoted at 6.25 pence. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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