Nanette Real Estate Group NV (AIM:NAT; TASE:NANT.B1) announced on Friday that it will convene an extraordinary shareholders meeting to apply to delist from London’s Alternative Investment Market (AIM). The share fell 60% on Friday to ₤0.075, giving a market cap of ₤12.9 million. The Eastern European property developer also published its financial report for the second quarter of 2009, in which its net profit was more than halved compared with the corresponding quarter of 2008.
In a bland notice to the AIM, Nanette said that its "board of directors believe the disadvantages of maintaining the company's listing exceed the benefits". It added, "The company's share price does not reflect the full value of the company, and is harming the Company's ability to raise funds." It stated that the cost of the listing is high, the share is relatively illiquid, and delisting the share will result in substantial savings.
Nanette said that its board will consider listing the company on another stock exchange when market conditions improve. The bonds will continue to be listed on the Tel Aviv Stock Exchange (TASE).
75% of Nanette's shareholders have to approve the motion to delist, for it to become effective. Nanette is controlled by Olimpia Real Estate Holdings Ltd. (TASE: OLMP), with a 32.6% stake, and Meshulam Levinstein Contracting and Engineering Ltd. (TASE:LEVI), with 20.5%.
Nanette posted €1.1 million revenue for the second quarter, compared with €1.2 million for the corresponding quarter. It posted an operating loss of €1.9 million for the second quarter, compared with an operating profit of €817,000 for the corresponding quarter, and net profit fell to €1.15 million from €3.6 million.
Financing expenses rose to €6.5 million for the second quarter from €5.9 million corresponding quarter, while financing income also rose to €12.3 million from €8.4 million. However, Nanette reported a loss of €1.9 million from its share in subsidiaries for the second quarter, compared with a profit of €706,000 for the corresponding quarter.
Nanette is just the latest Israeli company to delist from the AIM in the past year, including Adamind Ltd. Gilat Satcom Ltd., Gold Frost Ltd., Orad Hi-Tec Systems Ltd. (XETRA: OHT), Summit Real Estate Holdings Ltd. (TASE: SMT) subsidiary Summit Germany Ltd., Pilat Technologies International Ltd., and TesCom Software Systems Testing Ltd. Orca Interactive Ltd. and Vigilant Technologies Ltd. delisted from the AIM after being acquired.
Published by Globes [online], Israel business news - www.globes-online.com - on August 23, 2009
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