Today Magix announced that they will delist their shares from the stock exchange in November 2014. This is bad news.
As the company is listed on the unregulated segment of the stock exchange (“Entry Standard”), management is not obliged to provide the minority shareholders with a delisting offer. The German Federal Supreme Court (BGH) decided in 2013 that a downlisting or delisting does not require any more an approval from the shareholders’ meeting and a compensatory offer by either the stock corporation itself or its majority shareholder to the outstanding minority shareholders to acquire their shares against adequate monetary consideration. (I edited this paragraph on 5/21/2014).
In hindsight, this step seems to be predictable as the company moved its listing from the regulated “Prime Standard” to the unregulated “Entry standard” just last year. In addition, management has been aggressively repurchasing shares over the last couple of years leading to a steady decline in the free float.
For the portfolio I start selling shares today with a limit of EUR 2.90 which is close to my entry level.
Edit 5/21/2014: Position sold on 5/20/2014 for an VWAP of EUR 3.03. Realized gain of 3.0%.
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