Forgive the ignorance here- What does all this really mean for the club and it's shareholders, and is it just as simple as it costs more that the benefit we get?
RNS Number:5891I Charlton Athletic PLC 06 September 2006
CHARLTON ATHLETIC PLC
6 September 2006
RESULT OF EXTRAORDINARY GENERAL MEETING
Charlton Athletic plc (the "Company") confirms that at its Extraordinary General Meeting, held today, the resolutions for the cancellation of the admission of the Company's issued ordinary shares of 50p each ("Ordinary Shares") to AIM (the "Cancellation") and the consequential amendments to the Company's articles were approved.
The Company has agreed in principle with JP Jenkins Limited to join its off market matched trades service to allow Ordinary Shares in the Company to be bought and sold once the Cancellation has taken effect. Ordinary Shares will still be transferable through CREST after Cancellation. Shareholders should contact their stockbrokers if they wish to effect any trades through this service. A Circular with further information on this service will be issued to Shareholders shortly.
The announcement dated 14 August 2006 stated that the Cancellation would take effect from 7am on 14 September 2006. In order, however, to enable an explanatory Circular to Shareholders to be issued and to give Shareholders more time in which to dispose of their Ordinary Shares should they wish prior to the Cancellation, the Board has extended the period between the Extraordinary General Meeting and the Cancellation. It is intended that the Cancellation will now take effect from 7am on 21 September 2006.
As I understand it, it means that Charlton will still be a PLC, but if you want to buy/sell their shares you'll have to go to this broker who'll try and match your request. Say you have 1,000 shares to sell, he'll have a list of potential buyers and will ring round and get the best price. If this is the only broker trading CAFC shares then their prices might not be the cheapest, at least you should compare them to the broker you already use, otherwise you might get a shock. The spread between what the broker will quote to buy/sell might also be a bit wider than in normal market conditions. Currently the price to buy is 44p and to sell 40p, with a mid-price of 42p, that's already quite wide, but it could go out a bit further.
Crest is an electronic system of settlement for the equities market in the UK and Ireland and matches trades against payments and tells the company's registrars what names to add/delete to the share register. It does away with the need for endless shuttling around of paper certificates.
As for the costs of withdrawing from AIM these are appreciable, but vary from company-company, with a company like Charlton whose shares are lighlty traded it makes sense.
Comments
CHARLTON ATHLETIC PLC
6 September 2006
RESULT OF EXTRAORDINARY GENERAL MEETING
Charlton Athletic plc (the "Company") confirms that at its Extraordinary General Meeting, held today, the resolutions for the cancellation of the admission of the Company's issued ordinary shares of 50p each ("Ordinary Shares") to AIM (the "Cancellation") and the consequential amendments to the Company's articles were approved.
The Company has agreed in principle with JP Jenkins Limited to join its off market matched trades service to allow Ordinary Shares in the Company to be bought and sold once the Cancellation has taken effect. Ordinary Shares will still be transferable through CREST after Cancellation. Shareholders should contact their stockbrokers if they wish to effect any trades through this service. A Circular with further information on this service will be issued to Shareholders shortly.
The announcement dated 14 August 2006 stated that the Cancellation would take effect from 7am on 14 September 2006. In order, however, to enable an explanatory Circular to Shareholders to be issued and to give Shareholders more time in which to dispose of their Ordinary Shares should they wish prior to the Cancellation, the Board has extended the period between the Extraordinary General Meeting and the Cancellation. It is intended that the Cancellation will now take effect from 7am on 21 September 2006.
For further information please contact:
Crest is an electronic system of settlement for the equities market in the UK and Ireland and matches trades against payments and tells the company's registrars what names to add/delete to the share register. It does away with the need for endless shuttling around of paper certificates.
As for the costs of withdrawing from AIM these are appreciable, but vary from company-company, with a company like Charlton whose shares are lighlty traded it makes sense.