Shareholders of Pennsylvania anthracite miner, Atlantic Coal, have approved a resolution to delist the company from AIM with 77.11% voting in favour of the move and 22.89% against.
“The company will now seek to proceed with the cancellation of the admission of Atlantic Coal’s ordinary shares to trading on AIM,” the company said in a statement. “It is anticipated that cancellation will take place at 7.00 AM on 21 January 2016.”
A second resolution to change the company’s name to Atlantic Carbon Group was also passed by shareholders with 82.31% voting for the motion and 17.69% voting against. The name change will become effective “on or around” 24 January.
Following cancellation of the company’s AIM listing, an off-market trading facility will be make available for ordinary shares. The trading facility will be administered by Capita Asset Management and will be in place shortly after the delisting date.
The cancellation of its AIM listing comes as the company pursues the potential acquisition of a larger rival, it said last month, which would add considerable anthracite reserves to its portfolio, allowing the company to maintain production levels past the end of mining at its existing Stockton mine.
Under AIM rules, such an acquisition would be defined as a reverse takeover, adding significant additional expense and time to the takeover procedure – a situation the board of directors hoped to avoid by delisting the company.
“The directors do not consider the significant expence and timeline associated with a reverse takeover to represent an efficient or cost-effective way for Atlantic Coal to pursue an acquisition strategy,” the company said in a statement announcing the plans to seek shareholder approval to delist.
Atlantic’s anthracite production was 164 328 short t in the three months to October 2015, a 26% increase on the same period in 2014, reflecting renewed interest in a fuel that once powered the US.
Edited by Jonathan Rowland.
Read the article online at: https://www.worldcoal.com/coal/12012016/atlantic-coal-to-delist-from-aim-2016-37/