An­other one bites the crust

Finweek English Edition - - COMPANIES & MARKETS -

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.

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