Datalex’s three main shareholders, led by business Dermot Desmond, have driven a shareholder resolution at an extraordinary general meeting (egm) on Thursday in favour of the travel retail software company delisting from the Irish stock market.
Some 99.1 per cent of shareholders that voted on the matter backed the resolution, which required a majority of 75 per cent to be adopted.
The three biggest shareholders, which also comprise businessman Nick Furlong and his Pageant Investments vehicle and former Glen Dimplex chief executive Sean O’Driscoll, own 75.7 per cent between them and had been steadfast behind the plan. Holders of some 78.1 per cent of the company participated in the poll.
The brief egm in Dublin saw only one shareholder question come from the floor, with the investor asking if Datalex was still involved in any unresolved legal matters stemming from the emergence of accounting irregularities in 2019.
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Chairman David Hargaden responded: “Because of legal issues we can’t give you an answer at the moment. It’s still in progress.”
Datalex, led by chief executive Jonathan Rockett, has argued that delisting the company will free up management to focus more on strategy and execution, cut as much as $1.4 million (€1.2 million) of annual costs linked to it being a quoted business, and give it greater access to capital, including private equity or strategic investors.
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The delisting, which will take effect on September 12th, comes even as Datalex recently issued a positive trading update. Its revenues increased by 9 per cent on the year to $14.5 million (€12.7 million) in the first half, while and its loss before interest, tax depreciation and amortisation narrowed by two-thirds to $600,000.
While Datalex has made arrangements for a UK-regulated specialist venue for matching buyers and sellers of unlisted stocks, called JP Jenkins, to offer shareholders the possibility of trading stock after it delists, it will become much more difficult to trade.
Some institutional investors will become forced sellers, as they are not allowed to hold shares in companies that aren’t quoted on a regulated exchange.
Herald Asset Management, a London-based investment firm led by celebrated City stock-picker Katie Potts, dispose its entire 3.7 per cent stake within days of the delisting announcement at the end of July.
