Another significant departure from the City’s financial markets has emerged as Petershill Partners announced plans to abandon its London Stock Exchange listing, in a transaction worth about £3.4billion.
The investment firm, which has Goldman Sachs as its majority shareholder, will move into private ownership in what marks another blow to Britain’s capital markets.
The FTSE 250 group said it would withdraw from public trading after struggling with persistent undervaluation since market conditions worsened.
Thia decision represents the latest in a string of companies turning away from London, fuelling concerns over the attractiveness of UK equity markets.
The delisting proposal requires shareholder approval and would be priced at a substantial premium compared with recent trading levels.
Company leaders said market pricing had consistently failed to capture the firm’s underlying strength.
The board stated that shares had "not appropriately reflected the quality and underlying value of the company's assets, its strong financial performance and attractive growth prospects".
Directors said they reached the decision after completing a review of strategic alternatives and concluded that privatisation provided the most suitable path forward.
Company leaders said market pricing had consistently failed to capture the firm’s underlying strength
| GETTYPetershill has faced sustained discounts between its share price and the value of its investment portfolio.
Broader economic conditions, including high borrowing costs and market volatility, have worsened the problem, according to the firm.
The company added: "Therefore, having evaluated the company's strategic options, the board has concluded that the company should proceed with a delisting."
Shares have struggled since its initial public offering, even as management highlighted strong underlying results and growth opportunities.
Analysts said the move underlined the difficulty London faces in retaining listed businesses.
A number of firms have either relocated or considered foreign listings in recent years
| GETTYA number of firms have either relocated or considered foreign listings in recent years, citing deeper pools of capital and higher valuations overseas.
The departure of Petershill will add to pressure on the Government and regulators to restore confidence in UK markets and attract new listings.
The investment company specialises in taking minority stakes in alternative asset managers, providing exposure to private equity, credit, real estate and other investment strategies.
Its structure means market performance is heavily influenced by sentiment towards alternative investments, which have faced headwinds during the recent period of higher interest rates.
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Its structure means market performance is heavily influenced by sentiment towards alternative investments
| PAIndustry observers noted that Petershill is not alone in facing valuation challenges, with similar listed investment vehicles trading at sharp discounts to their underlying assets.
The company argued that moving away from the public market would allow it to operate with greater flexibility and focus on long-term strategy without being constrained by short-term share price movements.
The proposal will now be put to shareholders, with the board recommending approval of the plan.
If successful, the transaction would mark one of the largest take-privates from the London market in recent years.