The decision by Lighthouse Group to de-list from AIM was "shoddy" and will disproportionately hurt the majority of shareholders, Cavendish Asset Management has said.
Financial adviser Lighthouse Group announced it plans to de-list from AIM, citing pressures brought about by the Retail Distribution Review (RDR) and regulatory changes yesterday.
Paul Mumford, senior investment manager at Cavendish Asset Management and owner of Lighthouse Group shares as part of his AIM Fund, said the company was in decent situation at present, with a market capitalisation of £6m and £11m in cash.
He said: "The Lighthouse Group management clearly thinks that there might not be much of a future for the company once the RDR reforms come into effect.
"Whether this fear is justified or not, the manner in which they are going about de-listing for AIM is shoddy to say the least, and will disproportionately hurt the majority of shareholders in order to benefit the few."
Mumford (pictured) added: "The directors only hold 7% of the business and may be looking to get a quick sale following the de-listing; yet since the announcement the overall share price has plummeted from 5.75p to 3p. The least the management could do for the other 93% is table a cash offering at the value at the time of the announcement.
"Should no offer be forthcoming I would urge fellow shareholders to vote against the de-listing, as given the way in which it is being done it can only hurt their interests."
Director if the IFA Centre Gillian Cardy said the move highlighted the importance of smaller, local IFA businesses.
She said the story highlighted the lack of appetite among stock market investors for IFA businesses.
This article continues...
FCA checked files
Properties do not exist
Follows active fee cuts in June