Asia/Pacific News
Singapore's Yujin International Plans to Delist from AIM
Singapore-based shipping company Yujin International Ltd. [LON:YUJ] (YIL) says it plans to de-list from the London Stock Exchange's AIM market because it no longer sees selling stock as a useful route for raising funds.
"For some time now the Board has been concerned that trading in the Company's shares has become progressively more limited," YIL said in a statement to shareholders.
"The Board believes that the Company's share price does not reflect the value of the underlying business and that the Company is unlikely to be able to raise the funds required to develop its current and planned activities through a new share issue."
The company said it will hold a general meeting on May 2, 2013, allowing shareholders to vote on the delisting.
YIL said it expects its last day of trading on the AIM will be May 16, assuming passage of the shareholders' resolution.
The company, which owns five vessels with a total tonnage of 22,401 deadweight tonnes (dwt), said it has faced difficulties due to weakness in the U.S. dollar, the currency it uses for revenues and expenditures, an oversupply of vessels in the market, and the cancellation of a contract for two new chemical tankers.
YIL said that, as a small-cap company, a lack of liquidity in its shares has been a hindrance to fundraising, and it would prefer to seek private investors.
"However, these capital providers have been unable to advance discussions further as they would not be willing to invest in or operate the business in the view, and under the scrutiny, of the public markets," the company said.
"Subject to Delisting, the Company plans to resume its dialogue with these and other parties with a view to raising the requisite funding to execute a revised strategy."
