Bank of Ireland plans to exit London stock market and offers to mop up smaller shareholders
The proposals will be put to shareholders at the bank’s annual general meeting on Thursday, May 21.In a note to investors ahead of that meeting, the bank’s board said they keep the company’s listing arrangements under “regular review”.In recent years trading volumes in the shares in London have been “negligible” relative to overall trading, which is mostly in Dublin, they said.“As a result, the board considers that the cost of maintaining the LSE listing is no longer in the interests of the company and its shareholders as a whole.”The board is seeking approval to cancel the London listing of ordinary shares and the connected admission to trading on the Main Market of the LSE.The bank’s shares were admitted to the London main market for trading in 1959. However, the bank’s decision to rationalise its stock-market listing is consistent with a global trend for issuers away from dual listings to focus on a single exchange, generally one compatible with their main trading currency.The move, if it goes ahead, will have no impact on the shares listed and traded in Dublin, on the Euronext.Subject to shareholder approval, the plan will see the proposed delisting happen on June 29 next.In addition, the bank is also seeking approval from shareholders for a so-called “odd-lot offer” which would see a premium offered to buy out holders of very small shareholdings in the bank.Under that plan, the bank would pay a premium of 5pc above market price to holders of 30 or fewer ordinary shares. Bank of Ireland shares closed at €16.865 each on Thursday, so that would mean a maximum payout of just over €530 per eligible shareholder, at current prices.Odd-lot offers are voluntary and tend to be aimed at coaxing small shareholders who might otherwise baulk at the cost or hassle involved to sell.Dealing costs normally render such a disposal uneconomic, the bank said.The mechanism will require an amendment to the Company’s Articles of Association, which means it is subject to approval at the AGM.
