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Gable to delist from stock exchange as chairman, others resign

Gable to delist from stock exchange as chairman, others resign

Gable to delist from stock exchange as chairman, others resign European insurer Gable intends to delist its shares from the London stock exchange as the company’s strategic restructuring continues.
 
The company announced the plan on Monday and suspended trading on the stock exchange’s Alternative Investment Market (AIM).
 
In a statement, Gable said the delisting is part of the company’s plan to cut business costs, which is a “key element” of the ongoing reorganisation.
 
“The Board unanimously believes that it is no longer appropriate to maintain the company’s admission to trading on AIM and that greater shareholder value should ultimately be derived outside of the public domain,” the insurer said.
 
Gable said the costs associated with maintaining the AIM quotation are disproportionately high when compared to the benefits. The company’s board of directors believe that funds could be better used in operating the restructured business.
 
Management time and the legal and regulatory burden associated with trading on AIM would also be unequal to the expected future operational activities, the insurer said.
 
“The relatively small proportion of shares in free float together with low trading volumes make the stock illiquid for any meaningful shareholding negating the benefits normally associated with a listing on AIM,” Gable added.
 
The insurer said it plans to offer a matched bargain system for those interested in trading the shares post delisting.
 
The planned delisting was announced after executive chairman Jost Pilgrim resigned from the board on Friday. William Dewsall was appointed as his interim replacement.
 
On Monday, the insurer also disclosed the resignation of its nominated adviser and broker, Zeus Capital Limited, and two remaining non-executive directors, Blaise Craven and Kevin Alcock.
 
Following the recent major changes, Gable said it will keep executing its strategic restructuring plan.
 
“I am extremely encouraged by the progress of discussions regarding future capacity and on changes made as a result of our strategic review announced in July,” Dewsall said. 
 
“The delisting process forms a vital part of the cost cutting measures which were identified but, I am sure, will benefit the ultimate outcome of our plan.”
 
 
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