Idox plc plans to leave the London Stock Exchange’s junior AIM market on 29th May as its £340 million takeover nears.
The firm has urged shareholders to submit their acceptances of the offer from US-based investment manager Long Path, an existing investor in the company, or risk losing out when it re-registers as private company on that date.
The Woking-headquartered software company has been listed in London for a quarter of a century but agreed a deal late last year with Long Path, via vehicle Frankel, to be taken private.
Once the threshold of 90% has been passed, on 29th May any shareholders who haven’t responded may find the liquidity, marketability and value of their holdings are affected, it warned.
“Following the re-registration becoming effective, any remaining Idox shareholders would become minority shareholders in a privately controlled limited company and may be unable to sell their Idox shares,” it said.
“Idox shareholders are strongly encouraged to submit their acceptances as soon as possible.”
Long Path, a shareholder in the firm for the last seven years, holds 12% of the issued share capital of Idox.
Idox serves the public and private sectors, helping organisations to digitise complex workflows, manage critical information assets, and improve operational efficiency. It has delivered applications across areas such as planning, regulatory compliance, engineering information management, and elections technology.
Since its admission to AIM in December 2000, Idox has grown revenues from £1.2m to £87.6m.
“Despite the performance and strategic prospects, the Idox share price has traded within a relatively narrow range for a number of years,” stated Idox, led by CEO David Meaden (pictured), late last year.
“The Idox board acknowledges Idox is operating in a challenging macroeconomic environment and that there are execution risks associated with pursuing its strategy. These ongoing risks, combined with wider public market liquidity pressures in the UK market have contributed to the current valuation.
“The Idox board considers that there are certain advantages of being a private company – in particular in the ability, more easily, to forgo short term profitability in pursuing longer term growth; and also in terms of executing material acquisitions.
“The Idox board notes and welcomes Long Path’s intentions regarding Idox and its planned level of increased investment and, over time, growth in the overall headcount of the business.”
Long Path, which makes concentrated, long-term investments across public and private markets, currently has approximately $1.6 billion of assets under management.
strengthen Idox’s position as a leader in delivering critical digital infrastructure.”