Plus Markets announces closure of PLUS Stock Exchange
On 14 May 2012, PLUS Markets Group PLC (“PLUS” or the “Company”) announced that, following the termination of the formal sale process announced to the market on 3 February 2012, the Company intends to commence a process of orderly closure of the regulated activities undertaken by the PLUS Group, including the operation of PLUS’s cash equities recognised investment exchange.
In consultation with the FSA, the Company expects that the PLUS Group’s regulated activities will be wound down over a period of up to six months in order to minimise market disruption. PLUS has confirmed that it will work with companies currently traded on the PLUS-quoted market to ensure they are able to find suitable alterative arrangements for the trading of their shares. In the interim, the market will continue to operate as normal.
The closure of the PLUS market is likely to mean that many companies will now seek to admit their shares to listing on other exchanges, in particular the Alternative Investment Market (“AIM”) of the London Stock Exchange. It is expected that some smaller PLUS companies or those with low levels of liquidity in their shares may be taken private.
The CMS UK Equity Capital Markets team specialises in advising companies on listing on AIM, as well as on the Official List, and can provide advice and guidance on the formalities and timings required in moving to those markets, as well as the relative benefits and disadvantages and the continuing obligations with which listed companies must comply.
