RAB is proposing to delist from the AIM stock exchange following a strategic review. “In light of poor results, significant redemptions in the period to 11 May 2011 and further anticipated redemptions, third party assets under management will fall to a level that will make RAB’s business model difficult to sustain as a publicly quoted company," its board said in a statement.
“The board is therefore proposing that the company should delist from AIM and become a private company,” the statement added.
Leading a possible buyout are directors Michael Alen-Buckley, Charles Kirwan-Taylor, Philip Richards and Christopher de Mattos; the group has offered a price of 10p per share, a 22.7% premium above the closing middle-market price per share on 23 June 2011. The remaining four directors at RAB have formed a committee to evaluate the buyout.
The board says that its delisting, a proposal which is not dependent on the success of the buyout, will reduce costs and disclosure requirements as well as allowing it to pursue a “more flexible strategy regarding the investment of surplus capital”.
The statement added that "significant restructuring will be required, which will reduce the operational base of the company substantially”.
