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HMV seeks to change LSE category

By | Published on Monday 30 July 2012


HMV hopes to change its listing category on the London Stock Exchange, according to Retail Week. The move would make it easier for management at the flagging entertainment retailer to make “certain strategic decisions” in a more “timely and cost effective manner”.

Basically it would allow more flexibility for management to sell certain assets without having to go get shareholder approval for every deal. HMV is still investigating how best to sell off the rest of its live music division, having successfully sold the Hammersmith Apollo, in a bid to raise some much needed cash.

The retail company said in a statement: “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 company’s board would need the approval of 75% of the group’s shareholders to make the change. A General Meeting to take the vote is expected to be called anytime now.