China Biodiesel gives up on London
China Biodiesel International Holding Co Ltd (LON:CBI) has said that the performance of its share price has been a source of frustration for its directors and it would now cancel the admission of its shares to the AIM market of the London Stock Exchange, also intending to buy back its shares.
In a circular to shareholders, China Biodiesel proposed the purchase by Evolution Securities of shares in the company at 16.5 pence per share through a tender offer, and the subsequent buyback of these shares by the company.
The company said that the costs and regulatory requirements associated with maintaining the AIM listing are a significant burden on its financial resources and outweigh the benefits gained from maintaining admission.
The delisting will now have to be approved by 75% of the company’s
shareholders in order to come into effect.
China Biodiesel’s share
price has declined from a high of 15 pence to yesterday’s close of 10.5
pence since April.
Shares in the company soared 36% on the announcement.
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