TORONTO (miningweekly.com) – More than 10% of the mining and metals companies listed on the TSX and TSX-V delisted during 2014 and 2015, according to a new study by professional services firm EY.
The report, titled ‘What is driving delisting in the mining and metals sector in Canada?’, found that 41% of companies delisted owing to mergers and acquisitions (M&A) activity, 33% delisted voluntarily, 33% failed to meet continuous listing requirements, and 10% delisted owning to formal insolvency proceedings.
According to EY senior VP for British Columbia mining and metals, transaction advisory services leader and report author Michelle Grant, 149 mining and metals companies delisted from the TSX and TSX-V in 2014 and, in 2015, a further 172 companies delisted.
Most companies that delisted in 2015 were listed for between 5 and 14 years and, according to Grant, it appeared that there was a direct correlation between the commodities boom and the listing of these companies.
In 2014 the TSX and TSX-V were home to 57% of the world’s publicly listed mining and metals companies. Together, the two exchanges handled 48% of global mining equity transactions in 2013, and accounted for 46% of global mining equity capital that year. As of December 31, 2015, about 1 300 mining and metals companies were listed on these two exchanges, representing 40% of the total number of listed companies.
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