Qannas Investment To Cancel Listing On AIM To Complete Portfolio Buy

(Alliance News) - Qannas Investments Ltd said Friday it has "worked diligently" to advance its ...

Alliance News 29 November, 2019 | 3:00PM
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(Alliance News) - Qannas Investments Ltd said Friday it has "worked diligently" to advance its reverse takeover discussions.

Qannas shares remain suspended since September following the signing of agreement to acquire a portfolio of assets from a consortium of third party vendors for AED1.5 billion, about GBP316 million.

The Cayman Islands-registered closed-ended investment company said it has carried out its due diligence on the portfolio and has arranged certain appointments to its board following discussions with banks and financiers.

"The directors of the company remain persuaded by the commercial and strategic merits of the transaction, and that it represents a compelling opportunity to significantly enhance and broaden the existing investment portfolio of Qannas with the aim of achieving greater scale and enhanced diversification," Qannas said.

The company, however, is worried a "protracted execution phase" will increase the risk of the deal collapsing as the "benefits will diminish" the longer the deal takes.

Qannas is also concerned the length of time needed to get the deal done will see the deadline for re-admitting its share to AIM lapse.

As a result, the company is seeking cancellation from AIM as soon as possible.

Qannas continued: "The board considers that the transaction can be more expeditiously completed with greater certainty without the parallel complexities of the documentation and regulatory requirements of seeking a re-admission to trading on AIM.

"Following completion of the transaction, and implementation of certain restructuring measures that the company's investment manager believes will derive value for the company from the portfolio, the company intends to seek a new admission to AIM or to another regulated, liquid, market or multi-lateral trading facility."

The company noted that seeking such a path will be "subject to a range of risks" beyond its own control, including market conditions, funding requirements and investor appetite.

"Accordingly, there can be no guarantee that the company will be admitted to any regulated, liquid, market or multi-lateral trading facility in the future," Qannas added.

The company is hoping the cancellation will take place in December. The will put the resolution to shareholders, where it will need 75% approval.

Qannas added: "The board is aware that the proposed cancellation, should it be approved by shareholders at the EGM, would make it more difficult to buy and sell Qannas' ordinary shares following the cancellation. The board intends to put in place an internal process that will allow shareholders or persons wishing to acquire or sell Qannas shares to provide an indication to the company's administrator, Estera, that they are prepared to buy or sell at an agreed price."

By Paul McGowan; paulmcgowan@alliancenews.com

Copyright 2019 Alliance News Limited. All Rights Reserved.

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