Datatec said on Tuesday that it will terminate its listing on the London Stock Exchange’s Alternative Investment Market (Aim) with effect from 8 December 2017. It will remain listed on the JSE.
The technology group, which owns companies such as Westcon and Logicalis, has had a secondary listing in London since October 2006. It listed on Aim to get “greater access to capital with which to support the continued growth of its international businesses and to attract a broader range of institutional investors”.
In a statement to shareholders on Tuesday, Datatec said the Aim listing had “not had the desired effect of diversifying” its investor base.
“The liquidity of the shares on Aim has been very poor and no significant investors from the UK market have invested in Datatec shares via Aim,” it said, adding that 24% of its shareholders are non-South African and invest via the JSE because of good liquidity in the market.
Datatec has one class of shares (ordinary shares of 1c), of which almost 212m in issue. These shares are all listed on the JSE and on Aim.
More than 99.5% of the group’s shareholders will be unaffected by the delisting. Shareholder approval for the cancellation of the Aim listing is not required because Datatec shares will continue to be listed on the JSE, which is an Aim “designated market”. — © 2017 NewsCentral Media
