delisting: implications for shareholders?

Legacy_userLegacy_user Forumite
0 Posts
MoneySaving Newbie
Can anyone explain to me the implications for shareholders/prices if a company is to be delisted? I bought a few shares at a ludicrously low price as a bit of a punt (I'm happy to lose a few quid as part of the learning process - it's still a cheaper hobby than photography or girlfriends) but now it looks like the company might be delisted as part of a restructuring under a new CEO.

Replies

  • cheerfulcatcheerfulcat Forumite
    3.3K Posts
    Part of the Furniture 1,000 Posts Name Dropper Combo Breaker
    ✭✭✭✭
    Hi,

    If the company is delisted the shares will be very difficult to trade, so essentially they are worthless. Sorry!

    HTH

    Cheerfulcat
  • PalPal Forumite
    2.1K Posts
    ✭✭✭✭
    I agree that they might be difficult to trade but they would certainly not be worthless. In theory the value should not change, but in practice it usually falls because you have few available buyers and those that are willing to buy will drive a harder bargain.

    On the plus side, presumably the listing is being abandoned in order to improve the company meaning that the share price should rise again, although it will be difficult to ascertain whether this is happening.

    I suggest you write to the chairman of the company asking for an explanation and what he thinks you should do if you wish to sell your shares.
  • SystemSystem Forumite
    177.9K Posts
    10,000 Posts Name Dropper
    ✭✭✭✭✭✭
    Thanks for the replies. I'll think I'll sit on them as they were a 'penny-share-punt' anyway. 18 months ago they were around 125p and I bought them at less than 1p.

    I won't bother the new CEO as he'll be busy making the company more profitable to make my shares go up!

    I saw a suggestion from someone elsewhere that the threat of delisting (they haven't actually done it yet) may just be a ruse by the board to bring the shares down so they can make a killing. Sound's like it should be illegal?
This discussion has been closed.
Latest MSE News and Guides

Alexa, tell me some top tips

How can this Forumite maximise their smart speaker?

Join the Forum discussion

State pension shortfalls for women

MPs call it a 'shameful shambles'

MSE News