Reox management shakeup unlikely to lead to share suspension

NO suspension of share trading in Reox is expected following yesterday’s announcement that a number of management posts — including that of chief executive Jerry Henchy — are to be scrapped and “absorbed” into a revised management structure as a cost-saving measure.

But any such decision on the shares would be surprising given that Reox is not conventionally a public company and its shares are bought and sold via the so-called grey market, mainly through the company’s two stockbroking firms — Davy and Goodbody.

Shares in the Dairygold spin-off company are also traded extremely infrequently. The share price stood at e2.25 yesterday, the same price it has been for nearly a year.

Reox shares were launched on the grey market in July of 2006, at a price of e2 per share. They reached a high of e2.80 in early April of 2007 and hovered between e2.50 and e2.80 up to April of last year.

The last reported trade in the stock was May of last year, when they stalled at the aforementioned price of e2.25.

In a busy enough trading period in the preceding month, the share price fell by 25c from e2.50.