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High Court gives OnTheMarket.com flotation green light

Votes taken last week by members to agree demutualisation of Agents' Mutual ahead of AIM listing are approved by judges.

Nigel Lewis

The final hurdles that OnTheMarket.com faced in order to float on the London Stock Exchange have been cleared after the High Court of Justice Chancery Division (pictures, right) sanctioned the two key votes on demutualisation completed last week.

The court approved the Members Scheme – which enables  agents to turn their membership of Agents’ Mutual into shares, and the Loan Notes Scheme, which will see the Notes originally issued to the agents who helped fund the OTM start-up turned into equity.

The court decision follows last Friday’s member vote, during which they voted overwhelmingly to convert their existing membership interests into shares, ushering in both a new company to replace Agents’ Mutual – OnTheMarket Ltd – plus the dropping of the ‘one other portal’ rule.

“The High Court of Justice Chancery Division this morning sanctioned the Members Scheme and the three Loan Note Schemes which were overwhelmingly endorsed by our Members and Loan Noteholders at the Court Meetings on 6 September,” says Ian Springett, Chief Executive of OnTheMarket.

We will now continue to the next stage of the process.

OnTheMarket flotation

The court decision clears the way for demutualisation, a process that will begin tomorrow before an Initial Public Offering (IPO) is prepared to float the new company on the London Stock Exchange’s Alternative Investment Market (AIM).

North London agent Trevor Abrahamsohn, who is a non-exec director of Agents’ Mutual, says he is glad the process of demutualisation is finally over after the delays caused by the Connells court case.

“Finally we will have the structure and money to really challenge the duopoly of Rightmove and Zoopla,” he said.

 

September 11, 2017

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