Kingswood to delist from AIM as HSQ buys remaining stake

(Sharecast News) - Financial advice firm Kingswood Holdings has announced that majority shareholder HSQ Investments is to snap up all of the shares that it doesn't already own, giving shareholders the option of liquidity prior to delisting. Last week, HSQ raised its stake in the company from 68.4% to 89.39% by buying KPI's holding in the business. Now, HSQ intends to buy up the remaining shares and has requested to cancel Kingswood's AIM listing in a month's time.

The offer price, at 7p per share, is the same as last week's share purchase but follows a huge reduction in the share price over the past year.

HSQ, part of Pollen Street Capital, intends to merge Kingswood's UK and Ireland business with another Pollen Street wealth management company.

"HSQ considers that the offer provides Kingswood shareholders with the opportunity to realise their investment in the company for cash in a scenario where HSQ believes there is limited prospect of any future liquidity for the Kingswood shares," Kingswood said in a statement on Tuesday.

Kingswood's stock has halved since last summer as operations have been impacted by sector-wide headwinds, while its acquisition strategy has resulted in a big ramp up of debt over the past two years.