April 7 was the last day Primion Technology traded on the Börse, the German stock exchange. The German security technology company delisted because the company’s directors found the listing too expensive. Spanish technology company Azkoyen had taken over the business and controlled 90 percent of the shares. Other shareholders, fearing that they would not be able to get rid of their shares after April, sold them at a loss.
A delisting like this is mostly a bitter experience for shareholders. According to a study by Solventis Bank, in 2014 shareholders lost on average 18.9 percent in the first three months after a company announced it would be pulling out of the stock exchange.
More companies may pull out of the Börse in the future, fleeing from new regulations that give shareholders more rights, after a new directive from the European Union goes into effect in 2016.
“Compared with German securities trading law, the new directive is a tightening of the law to the benefit of the investors,” said Kai König, a partner at the Munich law firm Dornbach.