Law firm assists with delisting

May 20 2009 by Peter McCusker, The Journal

This structure enabled those shareholders who wished to continue with their investment in Metnor to do so and provided an exit route for those who did not.

The structure proved to be substantially cheaper than a traditional ‘take private’ and the delisting was achieved in weeks rather than months.

Mr Hughes added: “The strategy raised some interesting questions about directors’ duties in such circumstances, but we were able to navigate through these and come up with a solution that met the client’s objectives and budget.

“It demonstrates the need to use advisers who are experienced in public company work and who understand how the public markets operate and the rules that govern such markets.”

Killingworth-based property and construction group Metnor is quitting the AIM following Newcastle-based Northern Recruitment Group’s departure from AIM in December.

In the ten years since Metnor joined the market it has grown from a £9m annual turnover company to a large business with revenues of more than £80m.

Metnor finance director Keith Atkinson said: “We do not need cash, we are seriously undervalued and it is not helping us.”