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Sheffield United today announced that they are seeking to delist from the AIM stock market.
They will ask their shareholders to approve a recommendation at an Extraordinary General Meeting (EGM) later this month to cancel their admission to AIM.
United's plc directors have concluded that it is no longer in the best interests of the company or its shareholders to continue trading on AIM for the following reasons:
* The current economic turmoil has led to massive falls in the values of the global stock markets, from which Sheffield United is not immune.
* The small number of shares in Sheffield United traded means the share price may not reflect the true worth of the business.
* Sheffield United, like most other listed football clubs, is unable to raise capital from investors on the stock exchange.
* The costs, management time and regulatory burdens associated with maintaining an AIM listing are onerous.
* Being listed constrains the ability of the Company Group to react quickly to the requirements of a challenging marketplace.
A circular will be sent out to shareholders today confirming the club's intentions to table a resolution on the matter at an EGM on 27th December at Bramall Lane and subject to shareholder approval at the EGM, the cancellation will take effect at 8am on 7th January 2009.
Kevin McCabe, Chairman of Sheffield United plc commented: "The Board has unanimously decided to recommend delisting to the shareholders as we feel that the current economic environment means there is little benefit to Sheffield United and its shareholders in remaining listed.
"By delisting we will reduce costs and will make it easier to reposition the Company to better achieve our aspirations, which include promotion back to the Premier League for Sheffield United."
Shareholders wanting to trade their shares will be able to utilise a proposed matched bargain system to buy and sell shares in the Group at an agreed price between willing buyers and sellers.
In addition the Directors are proposing to put in place a mechanism to offer to buy up to 500,000 shares per shareholder per quarter at a quarterly defined price. In the first quarter following the de‑listing the price will be at least the mid market price quoted on AIM as at the close of business on the day before the cancellation of the Company's listing was announced. Further details of this system will be publicised before the EGM.
A statement by the club makes clear that the position of the shareholders should not be affected other than by the cancellation of the listing on AIM. Shareholders will still be entitled to attend Annual General Meetings and any EGM's held.
They will ask their shareholders to approve a recommendation at an Extraordinary General Meeting (EGM) later this month to cancel their admission to AIM.
United's plc directors have concluded that it is no longer in the best interests of the company or its shareholders to continue trading on AIM for the following reasons:
* The current economic turmoil has led to massive falls in the values of the global stock markets, from which Sheffield United is not immune.
* The small number of shares in Sheffield United traded means the share price may not reflect the true worth of the business.
* Sheffield United, like most other listed football clubs, is unable to raise capital from investors on the stock exchange.
* The costs, management time and regulatory burdens associated with maintaining an AIM listing are onerous.
* Being listed constrains the ability of the Company Group to react quickly to the requirements of a challenging marketplace.
A circular will be sent out to shareholders today confirming the club's intentions to table a resolution on the matter at an EGM on 27th December at Bramall Lane and subject to shareholder approval at the EGM, the cancellation will take effect at 8am on 7th January 2009.
Kevin McCabe, Chairman of Sheffield United plc commented: "The Board has unanimously decided to recommend delisting to the shareholders as we feel that the current economic environment means there is little benefit to Sheffield United and its shareholders in remaining listed.
"By delisting we will reduce costs and will make it easier to reposition the Company to better achieve our aspirations, which include promotion back to the Premier League for Sheffield United."
Shareholders wanting to trade their shares will be able to utilise a proposed matched bargain system to buy and sell shares in the Group at an agreed price between willing buyers and sellers.
In addition the Directors are proposing to put in place a mechanism to offer to buy up to 500,000 shares per shareholder per quarter at a quarterly defined price. In the first quarter following the de‑listing the price will be at least the mid market price quoted on AIM as at the close of business on the day before the cancellation of the Company's listing was announced. Further details of this system will be publicised before the EGM.
A statement by the club makes clear that the position of the shareholders should not be affected other than by the cancellation of the listing on AIM. Shareholders will still be entitled to attend Annual General Meetings and any EGM's held.
