UK shipbroker Braemar’s shares were suspended on the London Stock Exchange on Monday morning as it investigates a legacy transaction dating from 2013.
The London-listed group had said on 26 June it was requesting a halt to trading. This was confirmed on Monday by the UK Financial Conduct Authority (FCA).
The stock closed at £2.33 ($2.95) on Friday, 16% down from £2.79 before the announcement last month.
The share had gone as low as £2.20 on 26 June. Braemar was trading at £2.42 a year ago.
The suspension is temporary and Braemar will request a resumption after its delayed annual financial results are published. But a date has not yet been set for this. The results had been due by 30 June, according to FCA rules.
The 2013 deal involved payments being made up until 2017. The company has not revealed the nature of this transaction. Braemar told TradeWinds it had been advised not to comment further.
The broking world has been rife with speculation as to what the £3m ($3.81m) deal entailed.
‘Not comfortable’
The company was under the leadership of chief executive James Kidwell in 2013. He retired in 2019.
Braemar finance chief Nick Stone resigned on 20 June after four years. He will leave at the end of July and be replaced by Grant Foley.
“The board is not presently comfortable with the manner in which the transaction has been historically represented and the remaining liability recorded in the company’s balance sheet,” Braemar said on 26 June.
The probe is being carried out by directors and its auditor, BDO. The board has appointed FRP Advisory, an independent specialist firm, to assist.
A specific investigation committee has also been set up, chaired by group chairman Nigel Payne.
