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Following completion of the Placing and Open Offer, to the extent Qualifying Shareholders do not take up their right to subscribe for New Ordinary Shares pursuant to the Open Offer, the Senior Cash Facility Lenders will hold up to 95 per cent. of the ordinary share capital of Interserve as enlarged by the Placing and Open Offer. Following the completion of the Placing and Open Offer, there is likely to be a high degree of share price volatility and the share price may decline below the Issue Price. In addition, it is expected that the Company's free float will fall below 25 per cent. and the Company will need to formally apply to the FCA for a temporary modification of the requirement to maintain a free float of at least 25 per cent. Whilst the FCA has indicated that it would be minded to grant such a temporary modification to the Company for a period of twelve months from the date of completion of the Placing and Open Offer (even if there is no or a limited take up in the Open Offer), such modification will be subject to the Company being able to demonstrate that the market in the Ordinary Shares will operate properly and that there will be sufficient liquidity. Such matters are outside of the control of the Company and there can be no assurance that the Company will be able to satisfy those requirements.
If the Company were to be unable to satisfy the requirements imposed by the FCA, or to restore the free float within such period as the FCA may allow, it is possible that the Ordinary Shares would be suspended and/or that the Company would have to be de-listed, such that the Ordinary Shares would cease to trade on the London Stock Exchange. In these circumstances, Shareholders would lose the protection afforded by the Listing Rules and the liquidity and marketability of the Ordinary Shares would be significantly reduced, which could have a material adverse effect on the value of the Ordinary Shares.
Further, if there is no take-up or only a limited take-up by Qualifying Shareholders under the Open Offer, the Company believes that it is likely that one or more of the Lenders may requisition a Shareholders' meeting to vote on whether to cancel the Company's listing. Whilst all Shareholders would be entitled to vote on any such resolution, if more than 75 per cent of Shareholders voted in favour of such a resolution, the resolution would be passed and the Ordinary Shares would be de-listed. A cancellation of the Company's listing would mean that Shareholders would lose the protection afforded by the Listing Rules and the liquidity and marketability of the Ordinary Shares would be significantly reduced, which could have a material adverse effect on the value of the Ordinary Shares.
Would you take up the offer if there is a likelihood of delisting?
And this nugget is presumably why the Directors aren't taking up any shares.
They save the company, jobs for the employees, the taxpayer a bundle but shareholders get completely shafted.
I'd say Coltrane will not be happy
Will they all be back in the Saloon with guns to their own head again.
Last time Coltrane issued their objection within minutes. But realistically what can they do to get their own deal through?