Arnotts shareholder forced to cancel its market listings
A key shareholder in Arnotts, Boundary Capital, has said it can no longer afford to have a stock exchange listing in Dublin or London. Boundary is most associated with its former majority shareholder Niall McFadden, writes Emmet Oliver.
The listings on the London AIM market and the Dublin IEX market will now be cancelled, pending shareholder approval. Boundary also plans to change its name to Fleming Capital, as previously arranged.
Boundary Capital invested €40m to acquire a 28pc interest in the Arnotts Group in October 2007, but this and several others involving property were reduced in value, causing the company to run into problems with its banks.
In 2008, the company recorded a loss after tax of €54.4m arising from the revaluation of its portfolio to €29.2m from €80.4m.
In 2009, the portfolio was revalued downwards again to €11.2m.
Yesterday, Boundary said it had no significant cash flows since 2008.
"As a result of the limited cash available, the company has significantly reduced its operating expenses but is not in a position to meet the ongoing costs arising from being quoted," the company said yesterday.
Boundary's loans with Anglo Irish Bank expired on June 30 2009, but were later extended to December 31, 2009. "Anglo Irish Bank has not agreed a further extension for the debt facility since December 31, 2009, and discussions are still ongoing with Anglo Irish Bank in relation to this," the company said.
Mr McFadden will retain the name 'Boundary' with Boundary itself becoming Fleming Capital.
See Newsmaker: page 37