3 Oct 2009

Marlin Global listing risky - consultant

1:38 pm on 3 October 2009

A proposal to delist investment company Marlin Global has received the thumbs down by independent business consultants.

Marlin Global's directors asked KPMG to examine the costs and benefits of changing its structure from a listed invested company to a managed fund.

The idea was suggested by shareholder Gary Cross who believed the share price would rise from 75 cents to $1 if Marlin, which is managed by Fisher Funds, became a private unit trust.

But in its independent report, KPMG says the restructure carries a number of risks, the most significant being the need to get approval from, and buy out, warrant holders.

KPMG says the buy-out would create extra costs for shareholders, and it may be in their best interests not to consider the restructure until after the warrants have expired in October next year.

KMPG says if shareholders want to reconsider the idea then, the board will still have to consider the risk that many will choose to exit the fund.