Delisting of Eros from AIM to NYSE. What do i do?

[Mr Valand]

Hi Guys,

I'm a fairly ineperienced investor and one stock i own (Eros international) has recentely annouced it is going to delist from AIM and apply to list on the NYSE. I'm not sure what this means for my shares. They've performed very well since i've owned them and I believe the company has very good long term prospects, so I would still like to own them even when on the NYSE. My broker has notified me of the news and in a letter they have said they will attempt to transfer my shares. I've done some reserach on the net and I understand I would have to fill in a form.

Could anyone shed some light on this? Does anyone know the process? Will I lose my shares or should i just sell up now?

I hope i've posted this in the right section and i hope anyone can help.

Thanks,

Mr Valand

 

[jamezz34]

Mr Valand,

just seen your post is a month old so hopefully youve sorted it by now. Anyways in case you didnt already know, if you want to keep up to date with the lastest on the company, go to the investegate website and type in the ticker, that way you can review all Eros's RNS announcements.

I would be a bit skeptical at the moment, Ive found that companies in the past tend to delist, leave minority shareholders with little place to go and end up offering the market price to buy back the shares post-delisting. If the company was to buy back shares whilst still on the market or be taken over by another company, you would be in a better position to hold out for a premium over the shares.

So as a holder of shares in a company that has been delisted, you would have far less bargaining power and fewer channels to sell so you might have to take a price lower than what you envisaged. Also the shares are very tightly held by the directors so non-management shareholders wouldnt have been able to sway the vote on the decision to delist anyway.

Did you vote in favour of the delisting resolution?

In my mind they look like they want to go onto bigger and brighter things and a listing on AIM doesnt tally with that, do I honestly think they care about UK shareholders, not really, there are no major UK investors with a stake in the pie to stand up to them.