Optare delists from AIM
Optare has taken the decision to delist from the Alternative Investment Market (AIM). The manufacturer said there are significant costs associated with maintaining a quotation on AIM and the Board of Directors believe these costs outweigh the benefits. It claims these funds would be better deployed to support its investment in product support and future technology as part of its growth strategy. As such, the Board sees delisting from AIM as a ‘positive step towards increasing Optare’s competitive advantage’. Ashok Leyland, part of the Hinduja Group, will remain the major shareholder and continue to support the company in its growth strategy.
Small private investors stand to lose out as the value of their shares dropped heavily upon the news. Ashok Leyland is able to force the deal through as it has a 75% stake.