Ashtead/Sunbelt Considering Moving to Primary Stock Listing in the United States
The board of directors of Ashtead Group, parent company of Sunbelt Rentals, based in London and listed on the London Stock Exchange, has concluded that the company would be better off moving to a primary listing in the United States. While the company would retain a U.K. listing in the International Companies segment, a move to the U.S. market would be in the best interests of the business and its stakeholders, the board said.
“Today Ashtead is substantially a U.S. business, reporting in U.S. dollars with almost all the Group's operating profit (98% in FY24) derived from North America, which is also the core growth market for the business,” the company stated in a filing last week. “The Group's executive management team and operational headquarters are based in the U.S. and the vast majority of the Group's employees reside in North America.”
The board, which has been considering the idea for a period of time, plans to formally present the idea to shareholders in the coming weeks. Among the potential benefits the board sees are alignment of the primary listing location with the majority of the company’s business activity, leadership team and employee base as well as increased exposure to U.S. investors. Given access to deeper U.S. capital markets would enhance overall liquidity in the group’s shares, the board adds. The company added the the move would simplify share ownership for the wider employee base of the group and expand access to the recruitment and retention of top U.S. talent.
The board said it will discuss the proposal with shareholders before putting forward a formal resolution for approval. It expects that the necessary steps would be implemented over the next 12 to 18 months.
Sunbelt Rentals’ U.S. headquarters is in Fort Mill, S.C.
For a look at the company’s recently announced results for its fiscal second quarter and first half of 2024, check out: https://www.rermag.com/news-analysis/headline-news/article/55249175/growth-continues-at-slower-pace-for-sunbelt-rentals-in-fiscal-second-quarter
