HMV to change listing on Stock Exchange
Entertainment retailer HMV has announced its intention to transfer its listing on the Stock Exchange from premium to standard.
The retailer is currently in discussions regarding a disposal of its Live business and said that the change of listing would give it more regulatory flexibility to dispose of the business in a "timely and effective manner".
As a standard listed company, HMV said it would be able to implement any disposals associated with the strategic review of its Live Business in a shorter timescale and at lower expense, and without the need to seek shareholder approval in respect of the disposals.
As a premium listed company, HMV is currently subject to the "super-equivalent" provisions of the Listing Rules. Consequently it is required to seek prior shareholder approval in connection with the acquisition or disposal of assets which exceed certain size criteria and/or involve a transaction with a related party.
In a statement HMV said: "The Board believes this transfer will facilitate a more cost efficient and timely strategic review of the Live Business and reduce administrative costs generally. Furthermore, the Board wishes to align its regulatory responsibilities and the associated costs thereof with the company's size."
The retailer is posting a circular and notice of a general meeting to its shareholders which contains full details of the proposed transfer. A majority of 75% of shareholders need to approve the proposal to enable it to take effect in September as planned.
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