Proposed cancellation of admission from AIM

 

TIDMNTS 
 
RNS Number : 5941O 
Natsun Holdings Limited 
10 March 2009 
 

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Natsun Holdings Limited ("Natsun" or the "Company") 
 
Proposed cancellation of admission from AIM 
 
Natsun Holdings Limited (AIM : NTS) today announces that it intends to seek its 
shareholders' approval to cancel admission of the ordinary shares of 62.5p each 
in the Company ("Shares") to trading on AIM ("De-listing"). A circular 
containing details of the De-listing is being sent to shareholders today and 
copies will shortly be available from the Company's website, www.natsun.com.cn. 
 
 
The Company raised GBP6.3 million (before expenses) at its admission to trading 
on AIM in December 2007, from investors domiciled in the British Virgin Islands. 
Such investors continue to hold approximately 17 per cent. of the Company's 
issued share capital and have confirmed to the Directors that they remain 
committed to retaining their holdings in the Company. Furthermore, the founder 
and management shareholders who collectively hold approximately 82 per cent. of 
the Company's issued share capital, do not wish to sell any of their holdings. 
Accordingly, there have been negligible levels of daily liquidity in trading in 
the Shares since admission. 
 
 
Natsun coped well with the difficult trading conditions in 2008. However, as 
noted in the Company's trading update statement released on 21 November 2008, 
the Company faced difficult trading conditions in 2008 and the Directors believe 
that the Company is likely to be no better than break even for the full year 
ended 31 December 2008. Following release of this trading update, the quoted 
share price reduced substantially below the admission price of 122 pence, from 
117.5 pence to around 80 pence and it has remained fairly static since then. 
 
As the challenges faced by the Company in 2008 have continued into this year, 
the Directors do not anticipate a material change in their expectation of the 
Company's performance announced last November. The Directors also recognise that 
it is unlikely that the Company will be able to raise additional equity funding 
for the Company through a new share issue or to issue more shares in connection 
with an acquisition in the foreseeable future. The Directors accordingly believe 
the lack of liquidity in the Shares will continue. Considering the tough trading 
environment faced by the Company and the Company's poor share price and trading 
performance, the Board accordingly believes that the ongoing costs and 
regulatory requirements of a quotation on AIM can no longer be justified, and 
that greater shareholder value will ultimately be derived by operating the 
group's business off-market. 
 
 
After careful deliberation, the Board has concluded that it is in the best 
interests of the Company to de-list. 
 
 
Under Rule 41 of the AIM Rules, it is a requirement that any delisting from AIM 
must be approved by not less than 75 per cent. of shareholders voting in a 
general meeting and the expiration of at least 20 business days from the date on 
which notice of the de-listing was given. Accordingly, an Extraordinary General 
Meeting ("General Meeting") will be convened to approve the Delisting at 10.00 
a.m. on 2 April 2009, at the Company's offices, Nanshan Industrial 
Park, Longkou, Shandong Province, China. If the resolution is approved, it is 
expected that cancellation of dealings will take effect at 7.00 a.m. on 14 
April 2009. 
 
 
It is intended that the appointments of both the Non-executive Directors, 
Derrick Woolf and John Ball, will be terminated upon the De-listing occurring. 
 
 
As the Board recognises that some shareholders may wish to sell their Shares 
before the De-listing, it considers that it is appropriate for the shareholders 
to have the ability to sell their Shares to Eastocean Investment Corporation 
Limited. In the event that the shareholders of the Company wish to dispose of 
their Shares following the De-listing, it is intended that the Company will use 
its reasonable endeavours to create and maintain a matched bargain settlement 
facility. The facility would be managed by the Company. 
 
 
Any Shareholder wishing to sell Shares should contact Mr. Mei Yong in writing at 
the Company's offices at Nanshan Industry Park, Longkou City, Shandong 
265706, China. 
 
 
 
 
For further information, please contact: 
 
 
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| NATSUN HOLDINGS LIMITED                 |                              | 
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| Chen Yimin / Mei Yong                   |   [phone] / 866 | 
|                                         |                         6997 | 
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| EVOLUTION SECURITIES LIMITED            |                              | 
| (Nominated adviser)                     |                              | 
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| Barry Saint / Bobbie Hilliam / Esther   |         [phone] | 
| Lee                                     |                              | 
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END 
 
This information is provided by RNS 
            The company news service from the London Stock Exchange 
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