Entertainment retailer HMV is planning to transfer its Stock Exchange listing category on the Official List from premium to standard.
HMV said the new listing would give it more regulatory flexibility to enable it to make certain strategic decisions in a “timely and cost effective manner” because it would not have to seek shareholder approval.
The retailer said the new listing would, for example, enable it to implement disposals associated with the strategic review of its Live business in a “shorter timescale and at lower expense, and without the need to seek shareholder approval in respect of such disposals”.
Currently HMV is required to seek prior shareholder approval in connection with the acquisition or disposal of assets which exceed a certain size or criteria, and/or involve a transaction with a related party.
HMV said: “The board considers that the proposed transfer is in the best interests of the company and its shareholders as a whole.
“The board believes this transfer will facilitate a more cost efficient and timely strategic review of the Live business and reduce administrative costs generally.
“Furthermore, the board wishes to align its regulatory responsibilities and the associated costs thereof with the company’s size.”
The retailer will tomorrow post a circular and a Notice of General Meeting to shareholders containing details of the proposed transfer. HMV must obtain the prior approval 75% of its shareholders.