Proposed cancellation of admission to AIM

    RNS Number : 5184J
  Sheffield United PLC
  04 December 2008
   

    For immediate release: 4 December 2008

    Sheffield United plc
    ("Sheffield United", the "Company" or "the Group")

    Proposed cancellation of admission to trading on AIM 

    Sheffield United plc, (AIM: SUT) the football, property, leisure and services company announces that an application has been made today
for the cancellation of admission to trading on AIM of its ordinary shares, subject to the approval of the Company's shareholders. The
Company has today posted a circular to its shareholders to convene an extraordinary general meeting to be held on 27 December 2008 ("EGM")
in order to table a resolution to approve the cancellation. 

    It is expected that, subject to shareholder approval at the EGM, the cancellation of admission to trading on AIM will take effect at
7.00 am on 7 January 2009.

    Full details of the reasons behind the board's decision to cancel the Company's admission to trading on AIM, including details of what
action shareholders should take, are set out in the circular which will be posted to shareholders today.  

    In summary, the board of directors of the Company (the "Directors") have been considering for some time the merits or otherwise of the
Company continuing to trade on AIM. The following factors were taken into account during their review:

    *     The current economic turmoil has led to massive falls in the values of the global stock markets, from which Sheffield United is
not immune. The susceptibility of the share price to market conditions is not to the benefit of the business.

    *     The low liquidity of the shares in Sheffield United leads to a volatility in the share price which may not reflect the true worth
of the business.

    *     Sheffield United, like most other listed football clubs, is unable to raise capital from institutional investors as they remain
uninterested in committing funds to companies in the football industry coupled with the present problems of the markets. The Directors do
not expect this situation to change in the foreseeable future.  

    *     The costs, management time and regulatory burdens associated with maintaining an AIM listing. 

    *     The constraints on the ability of the Company as a listed Group to react quickly to the requirements of the business and the
market in which it trades imposed by the reporting obligations set out in the AIM regulations. 

    The Directors have therefore concluded that it is no longer in the best interests of the Company or its shareholders as a whole to
maintain admission to trading on AIM of its ordinary shares.

    The Directors are aware that shareholders may still wish to acquire or dispose of ordinary shares and, accordingly, intend to use
reasonable endeavours to put in place and maintain a matched bargain settlement facility. Under this facility, it is intended that
shareholders or persons wishing to acquire shares will be able to leave an indication with the matched bargain settlement facility provider
that they are prepared to buy or sell at an agreed price. In the event that the matched bargain settlement facility provider is able to
match that order with an opposite sell or buy instruction, the matched bargain settlement facility provider will contact both parties and
then effect the order. Shareholders who do not have their own broker may need to register with the matched bargain settlement facility
provider as a new client. This can take some time to process and therefore shareholders who consider they are likely to use this facility
are encouraged to commence it at the earliest opportunity. Once the facility has been arranged, the contact details of the matched bargain settlement facility provider will be made available to shareholders on
the Company's website at www.sufc.premiumtv.co.uk.  
    Subject to agreement of appropriate terms with the matched bargain settlement facility provider, the Directors have also agreed in
principle to provide liquidity to the matched bargain settlement facility for at least 12 months after the de*listing by agreeing to provide
a buyer of last resort for a maximum aggregate amount of 500,000 ordinary shares to be purchased from that shareholder and their connected
persons in any one quarter at a "floor" purchase price. This price will be set by the Directors on a quarterly basis but for the purposes of
the first quarter following the de*listing the price will be at least the mid market price quoted on AIM as at the close of business on the
date before the cancellation of the Company's listing was announced.  

    Kevin McCabe, Chairman of Sheffield United plc commented: "The Board has unanimously decided to recommend delisting to the shareholders
as we feel that the current economic environment means there is little benefit to Sheffield United and its shareholders in remaining listed.
By delisting we will reduce costs and will make it easier to reposition the Company to better achieve our aspirations, which include
promotion back to the Premier League for Sheffield United."  


    For Further information:

 Sheffield United PLC:          [phone]
 Jason Rockett
 Simon Capper

 Tavistock Communications:      [phone]
 Jeremy Carey

 KBC Peel Hunt:                 [phone]
 David Davies    
 Oliver Stratton


This information is provided by RNS
The company news service from the London Stock Exchange
 
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