Pre 8 a.m. comments
Communications group Hasgrove (LON:HGV) looks an unusual situation. They seem to have sold off their largest subsidiary, and now have surplus cash of £12.5m as at 10 May 2013. They intend returning £10.25m of this cash to shareholders via a tender offer at 82p (the shares are currently 78p), and then De-List.
As the market cap is only £18m, this means shareholders should get over half their money out, but I don’t suppose they’ll be thrilled with the de-listing, and the shares are likely to fall today as a result. I believe companies should only ever de-List as a last resort, when there really are no other options. Otherwise they are breaking what I regard as an implied contract with shareholders – i.e. when we buy shares in a Listed company, we are doing so on the basis that we will in future always have the facility to trade those shares on the stock market. To remove that facility totally changes the situation. Most investors don’t want to hold shares in private companies, and of course if you hold them via spread bets or CFDs then you are forced to close, as…
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