Smurfit Set to Leave UK Stock Market
The UK stock market is set to lose another big name as Smurfit Kappa Group Plc is preparing to delist from the London Stock Exchange. The Dublin-based packaging company is the latest in a string of large companies to leave the UK stock market in recent years.
Background of Smurfit
Smurfit Kappa Group Plc is a leading provider of paper-based packaging solutions. The company was founded in 1934 and is headquartered in Dublin, Ireland. It is one of the largest paper-based packaging companies in the world, with operations in 35 countries and over 45,000 employees. The company has a strong presence in Europe, North America, Latin America, and the Asia-Pacific region.
Reasons for Departure
The company has cited a number of reasons for its decision to delist from the London Stock Exchange. The primary reason is the company’s desire to simplify its corporate structure and reduce costs. The company also believes that its current corporate structure is not optimal for its long-term growth.
The company has also cited the increasing cost of compliance with UK regulations as another factor in its decision to delist. The company believes that the cost of compliance with UK regulations is too high and is not in line with its long-term growth strategy.
Impact on Shareholders
The company’s decision to delist from the London Stock Exchange will have an impact on its shareholders. Shareholders will no longer be able to trade their shares on the London Stock Exchange. Instead, they will have to trade their shares on the Irish Stock Exchange.
The company has also announced that it will be offering a cash payment to shareholders who choose to remain with the company. The amount of the payment will depend on the number of shares held by the shareholder.
Reaction from Analysts
Analysts have reacted positively to the news of Smurfit’s departure from the London Stock Exchange. They believe that the company’s decision to simplify its corporate structure and reduce costs will be beneficial in the long run.
Analysts also believe that the company’s decision to delist from the London Stock Exchange will help to reduce the cost of compliance with UK regulations. This could potentially lead to increased profitability for the company in the future.
Conclusion
Smurfit Kappa Group Plc is set to delist from the London Stock Exchange. The company has cited a number of reasons for its decision, including the desire to simplify its corporate structure and reduce costs. The company’s decision will have an impact on its shareholders, who will no longer be able to trade their shares on the London Stock Exchange. Analysts have reacted positively to the news, believing that the company’s decision will be beneficial in the long run.