DISGUSTING
I have been a long term, faithful shareholder in Highcroft Investments PLC, a commercial property investment company (REIT) listed on the main market of the London Stock Exchange. Over many years the company has been prudently managed, with all shareholders benefitting from the high-quality properties let to tenants running successful businesses.
But how life can throw up unpleasant surprises! Since the appointment of Paul Leaf-Wright as CEO the company has decided to delist from the London Stock Exchange, citing listing costs, regulatory requirements, and lack of liquidity in the shares. This is very peculiar given the company has easily coped with the listing costs historically, and whilst the shares don't trade in large volumes, there has been the ability for the stock to be dealt in the secondary market, in an orderly fashion, via most share dealing platforms. In terms of regulation, so what? Regulation is a good thing, and it is designed to protect investors from harm! The company has always met its regulatory obligations in the past, and there would be no reason why it wouldn’t be able to in the future.
According to the board, this move is "in the best interests of the Company and its Shareholders as a whole". This is pure fallacy. Favouring one group of shareholders (groups holding large percentages of the shares) over another (private investors) is not looking after the best interests of shareholders "as a whole". It is a process of deliberately hurting the interests of one group of investors, to the benefit of another.
Private investors will now see their company disappear from the public view of an LSE listing, to a TISE listing of low liquidity, where no popular trading platforms will deal in the shares. Many private investors will see their holdings disowned by their ISA or SIPP provider, and share certificates issued outside of a tax wrapper. Other investors will be forced to sell their shares at depressed prices, and this process has already begun. The share price has fallen from £8.80 since the announcement, with pricing as low as £6.23. A large shareholder (MB, DG CONN & ASSOCIATES) has benefitted from the desperation, picking up shares on the cheap and increasing their ownership to 24%. The Net Asset Value per share is £10.80, thus a 42% discount.
This is the treatment private investors have received for their faith in the board.
These are the officers of the company, responsible the management and strategic direction of the business:
CEO: Paul Leaf-Wright
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CHAIRMAN: Charles Butler
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FINANCE DIRECTOR: Roberta Miles
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NON-EXECUTIVE DIRECTOR AND SENIOR INDEPENDENT DIRECTOR: Simon Costa
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NON-INDEPENDENT NON-EXECUTIVE DIRECTOR: David Warlow
Remember their names.