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BATM 'puzzled' after FTSE Russell moves its nationality to Israel
3rd Feb 2022 07:36
(Sharecast News) - Networking and medical laboratory technology company BATM updated the market on the FTSE Nationality Review of Companies published this week by FTSE Russell on Thursday, noting that its nationality had been reassigned to Israel, from the UK.
The London-listed firm also announced its intention to launch a share buyback programme, subject to shareholder approval.
As it said on 17 January, BATM remained "committed" to maintaining its membership of the FTSE UK Index Series, and was in dialogue with FTSE Russell to investigate possibilities of an extension.
Should an extension not be granted, the reassignment of BATM's nationality would take effect from 21 March.
"We are very disappointed by the decision of FTSE Russell not to grant us a further extension and maintain our membership of the FTSE UK Index Series," said chief executive officer Zvi Marom.
"We are puzzled by this decision as we have been in regular dialogue with them and had certain indications that it would be granted."
Marom noted that BATM was not the only company that had been denied an extension by virtue of its domicile and dual listing.
"A lack of pragmatism and blindness to the possibility of market disruption is fast becoming a deterrence for good foreign-domiciled companies to list on the London Stock Exchange, especially when other bourses do not have such draconian rules.
"We hope the lawmakers look at this again and become welcoming to global companies who wish to give investors in index-linked funds in the UK as well as those in their own countries the opportunity to invest in them."
BATM's directors, meanwhile, approved a share buyback programme of up to 10% of its issued share capital.
The board said the group had a "strong" balance sheet, explaining that the buyback programme, which would be funded from its net cash position, would form part of its broader strategy to deliver shareholder value.
"The commencement of the buyback programme is subject to the approval of shareholders at a general meeting to be convened," the directors said.
"Further details on the buyback programme will be provided in the notice of the general meeting and the group will update the market in due course."
At 0949 GMT, shares in BATM Advanced Communications were down 11.27% at 53.24p.
The London-listed firm also announced its intention to launch a share buyback programme, subject to shareholder approval.
As it said on 17 January, BATM remained "committed" to maintaining its membership of the FTSE UK Index Series, and was in dialogue with FTSE Russell to investigate possibilities of an extension.
Should an extension not be granted, the reassignment of BATM's nationality would take effect from 21 March.
"We are very disappointed by the decision of FTSE Russell not to grant us a further extension and maintain our membership of the FTSE UK Index Series," said chief executive officer Zvi Marom.
"We are puzzled by this decision as we have been in regular dialogue with them and had certain indications that it would be granted."
Marom noted that BATM was not the only company that had been denied an extension by virtue of its domicile and dual listing.
"A lack of pragmatism and blindness to the possibility of market disruption is fast becoming a deterrence for good foreign-domiciled companies to list on the London Stock Exchange, especially when other bourses do not have such draconian rules.
"We hope the lawmakers look at this again and become welcoming to global companies who wish to give investors in index-linked funds in the UK as well as those in their own countries the opportunity to invest in them."
BATM's directors, meanwhile, approved a share buyback programme of up to 10% of its issued share capital.
The board said the group had a "strong" balance sheet, explaining that the buyback programme, which would be funded from its net cash position, would form part of its broader strategy to deliver shareholder value.
"The commencement of the buyback programme is subject to the approval of shareholders at a general meeting to be convened," the directors said.
"Further details on the buyback programme will be provided in the notice of the general meeting and the group will update the market in due course."
At 0949 GMT, shares in BATM Advanced Communications were down 11.27% at 53.24p.