LAWYERS came up with an innovative solution when a construction company decided to delist from the Stock Exchange.

Tees Valley and Newcastlebased Mincoff Jacksons assisted North-East property development and construction company Metnor Group plc, in bringing to an end its tenyear listing.

Traditionally to delist, a new company is formed to buy all the shares in the business and become private.

However this is usually extremely costly and can take months to complete.

In the case of Metnor’s move off the stock market, the Mincoff Jacksons team came up with a solution that saved the company time and expense.

By establishing a matched bargain arrangement in which shareholders could trade in their shares off market, Metnor was able to persuade the requisite number of shareholders to sanction the proposal to delist. This structure enabled those shareholders who wished to continue with their investment in Metnor to do so and provided an exit route for those who did not.

As a result Metnor, which announced its plans to leave the Stock Exchange on March 3, was delisted on April 1.

Paul Hughes, partner in the corporate team at Mincoff Jacksons, said: “We were delighted that Metnor chose to instruct us on the delisting.”