JOHANNESBURG (miningweekly.com) – Aim-listed Afarak has received a request from Kermas Resources, which holds 26.90% of the company's shares and votes, to delist from the Helsinki Stock Exchange as soon as it practically can.
According to the proposal, the company shares would only maintain a listing on the London Stock Exchange (LSE).
Kermas' proposal will be considered along with other matters in the company's extraordinary general meeting in February, Afarak said in a statement on Tuesday.
The board has found that the current dual listing is an unnecessarily expensive and resource-consuming solution relative to the company's size and market position.
“Even though the company's share is currently traded mainly on the Helsinki Stock Exchange, the LSE is the most natural place to list a global company operating in the mining and metals sector,” the statement said.
Before filing an application for delisting, the company will provide shareholders with the opportunity to sell their ownership by acquiring its own shares in a voluntary public takeover bid made to all the company's shareholders.
“The takeover bid's pricing must be based on the share's market value while taking into account the equal treatment of shareholders.”
The planned takeover bid will be launched during the first half of the year.