Another one bites the crust
THERE PROBABLY won’t be too many eyelids batted at the news cellular services specialist VOX is proposing to buy out shareholders and delist. Talk of a delisting at this former market darling has been in the market for the best part of two years.
Perhaps a few stubborn shareholders (who can opt to stay on board an unlisted vehicle) will argue the toss about price, but there really shouldn’t be too many quibbles. However, the Vox proposal does serve to remind us small caps are in a particularly fragile space. With sentiment brittle it’s understandable companies would be keen to go private. It’s just a pity it’s usually the really good ones that go first, even if there’s a fair chance the company – in somewhat altered state – may return to the market in better times.
The Vox proposals come hard on the heels of a delisting consideration at Universal Industries, another promising small cap contender. Frankly, it’s starting to be difficult to look at a cautionary notice from a small cap company and not immediately think of the “D” word.