GAH Gable Hldgs

TIDMGAH

RNS Number : 4937J

Gable Holdings Inc

12 September 2016

12 September 2016

Gable Holdings Inc.

("Gable" or the "Company")

Update on Strategic Restructuring Plan

Intention to delist

And

Board changes

Intention to delist

Since the publication of our results for 2015 the Board has been working hard to secure the best outcome for policyholders, shareholders and other stakeholders. The Company is making further progress in the development of its Strategic Restructuring Plan, details of which were set out in the report and accounts for the year ended 31 December 2015.

The Company has previously announced that, in the absence of a significant cash injection, Gable would have to significantly downsize or stop its operations, and the Group ceased writing new business (other than that we were already contractually obliged to honour) with effect from 15 July 2016. Good progress has been made regarding securing alternative capacity for the Group's renewal book and we are in advanced discussions with a global carrier to provide that cover with effect from 1 October 2016.

A key element of our work has been a plan to cut costs and, accordingly, the Board unanimously believes that it is no longer appropriate to maintain the Company's admission to trading on AIM and that greater shareholder value should ultimately be derived outside of the public domain.

In reaching this conclusion, the Board has also considered the following:

-- the costs associated with maintaining the AIM quotation (such as legal, accounting, broking, London Stock Exchange and nominated adviser costs) are disproportionately high when compared to the benefits, and the Directors consider that these funds could be better utilised in operating the restructured business;

-- the management time and the legal and regulatory burden associated with maintaining the Company's admission to trading on AIM, and meeting the AIM Rules and related regulatory requirements (including reporting, disclosure and corporate governance requirements) would be disproportionate to the anticipated future operational activities; and

-- the relatively small proportion of shares in free float together with low trading volumes make the stock illiquid for any meaningful shareholding negating the benefits normally associated with a listing on AIM.

The Company intends to offer a matched bargain system for shareholders that express an interest in trading the shares post delisting. To register an interest, a message should be sent to info@gableinsurance.com.

Resignation of Nomad and Non-executive directors

The Company also announces today the resignation of the Company's Nomad, Zeus and two remaining non-executive directors, Blaise Craven and Kevin Alcock.

A statutory announcement of the resignation of its Nominated Adviser has been released separately to this announcement and the Company will not pursue the appointment of a replacement Nominated Adviser and accordingly the Board expects the admission of its AIM securities will be cancelled in accordance with Rule 1 of the AIM Rules for Companies.

The Company will continue to execute its Strategic Restructuring Plan and will keep shareholders informed of progress.

Commenting, William Dewsall, CEO and Chairman, said: "I am extremely encouraged by the progress of discussions regarding future capacity and on changes made as a result of our strategic review announced in July. The delisting process forms a vital part of the cost cutting measures which were identified but, I am sure, will benefit the ultimate outcome of our Plan."

Enquiries:

 
 Gable Holdings Inc.                  Tel: +44(0) 20 
  William Dewsall, Chief Executive         7337 7460 
  Michael Hirschfield, Group 
  Finance Director 
  John Bick, Investor Relations 
 Haggie Partners LLP                 Tel : +44(0) 20 
  Peter Rigby                              7562 4444 
 

This information is provided by RNS

The company news service from the London Stock Exchange

END

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September 12, 2016 02:01 ET (06:01 GMT)

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