MORTGAGE LENDER Finance Ireland is to cancel its stock market listings in London and Dublin, blaming the "significant burden" of the cost of the listings, which came to €300,000 in 2007.
The lender, an "equity release company" which traded as Ship, allowed older people to borrow money using their homes as security. It suspended new lending in February, temporarily withdrawing from the "lifetime mortgage" market, due to the high cost of wholesale funding markets.
The company will apply to delist from the AIM in London and the IEX, the junior market in Dublin.
In a stock exchange notice, the firm said that "the ongoing cost and administrative burden" of the listings "outweighs any potential benefits that may accrue".
The lender said it had "dramatically reduced" its costs and was looking for "opportunities in niche financial services". It said it had examined a number of possible acquisitions "to increase shareholder value". It said the delisting would not interfere with or inhibit "the company's existing business or its consideration of possible acquisition opportunities".
The company will hold a general meeting on June 24th at which, under AIM rules, not less than 75 per cent of shareholders voting must approve the delisting. Subject to approval, the company plans to delist on July 2nd.
The company said it would be in "a good position" to re-enter the lifetime mortgage market "once the whole lending market returns to equilibrium".
Chairman Billy Kane said Finance Ireland had been in talks with banks about new funding, but he said he believed it would be the end of the year before wholesale funding markets would improve.
Ship has outstanding loans of about €50 million to 500 customers. The average age of its customers was 64 and its funding was primarily provided by Ulster Bank.
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