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API Group, a manufacturer of packaging materials, has completed its move to AIM and cancelled its shares on the London Stock Exchange’s main market. The move follows cash flow problems disclosed late last year, which API resolved through an open offer underwritten by its two largest existing shareholders, raising £8 million.

As a result of the open offer, less than 25 per cent of API’s shares are now in public ownership, forcing a move to AIM which the directors state ‘may in any case provide a more appropriate market for the company’ because of its more flexible regulations.

US institutional investors Steel Partners II and Wynnefield Capital hold over two-thirds of API’s shares between them, while a further nine per cent is held by investment bank Goldman Sachs.

Established in the 1950s and formerly known as Associated Paper Industries, API manufactures specialised packaging materials such as decorative holographic foil and laminated board.

The company’s share price peaked at 173.15p in March 2005, and has since dwindled to 25.5p. Last year the executive management team was replaced and is now led by CEO Andrew Turner.

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