Tiso Blackstar Group, formerly Times Media Group‚ has announced that its board has decided to apply for the cancellation of the primary listing of its shares on the Alternative Investment Market of the London Stock Exchange (AIM).
The effective date is Tuesday, 17 April 2018.
The primary listing of Tiso Blackstar shares on the exchange operated by the JSE will continue and is not affected by the cancellation of the AIM listing, it said.
On cancellation of the AIM listing, the shares held on the UK Register will be transferred to the South African Register.
Tiso Blackstar listed on AIM in January 2006 and raised 80 million pounds of capital at the time. In 2011, the company completed a secondary listing on the Alternative Exchange of the JSE (Altx).
In July 2017, the company transferred its listing from a secondary listing on Altx to a dual primary listing on AIM and the Mainboard of the JSE.
The group said that its AIM shareholding has declined significantly since listing on the JSE, accelerated by the 2015 merger with Times Media Group, with the split between the UK Register (AIM) and the South African Register (JSE) migrating from 100% AIM and 0% JSE, to 12% AIM and 88% JSE.
“Given the South African dominated asset base, this trend is only likely to continue. The liquidity of the shares on AIM has been low,” it said.
It further noted that AIM listing-related costs are substantial, “and as a result of the dual primary listing, the principle of applying both sets of regulations must be adhered to, which can be challenging from a practical perspective, creating additional regulatory complexity, costs and decreased operating flexibility”.
“This cost and complexity comes with no benefit of increased share liquidity or potential to raise capital. The cancellation of the AIM listing will result in substantial savings for the company in both recurring and future deal-related costs and will reduce complexity,”