RSM Tenon’s shareholders are to vote on changing its shares from a “premium listing” to a “standard listing” category as a way to further ease the financial pressure of the firm.
RSM Tenon said the move is necessary in order to implement numerous strategic initiatives that would improve the efficiency of the firm following a share slump and a 3% drop in revenues to £107.8m ($168m) announced in February.
The firm said it needs increased regulatory flexibility; however its current listing category means that it needs to seek prior shareholder approval in connection with an acquisition or disposal of assets that exceed a certain size criteria or involve a transaction with a related party.
“These restrictions, which would not be applicable to a company that has a standard listing rather than a premium listing, have prevented the company from carrying out a number of projects. Consequently these projects have been rendered impracticable on both a time and cost basis,” RSM Tenon said.
The change would not affect the way shareholders buy or sale stocks and the vote will take place at the firm’s general meeting on 4 July.