Excelsior Capital Settles Litigation, Plans Dividend and Delisting
Excelsior Capital has settled its Federal Court dispute with London City Equities, paving the way for a capital return, fully franked dividend, and eventual delisting from the ASX.
- Settlement reached with London City Equities ending Federal Court litigation
- Plan to realise all investments and pay liabilities before distributions
- Intention to declare a fully franked dividend and return capital to shareholders
- Delisting from ASX planned following shareholder approvals
- Shareholder meeting expected in January 2026 to approve transactions
Settlement Ends Prolonged Litigation
Excelsior Capital Limited (ASX, ECL) has announced a significant development, settling its ongoing Federal Court litigation with London City Equities Limited (ASX, LCE). This resolution marks the end of a legal dispute that has loomed over the company since at least April 2024, when an application to wind up the company was filed. The settlement agreement requires Excelsior to take decisive steps to realise its investments and settle outstanding liabilities.
Capital Return and Dividend Planned
Following the realisation of assets and payment of liabilities, Excelsior intends to distribute the net proceeds to shareholders through a fully franked dividend and an equal return of capital. While the exact amounts have yet to be finalised, the company aims to maximise the dividend payout. These distributions are expected to occur in one or more tranches between February and April 2026, pending regulatory approvals and shareholder consent.
Shareholder Approvals and Regulatory Consultations
The company is currently consulting with the ASX to determine whether shareholder approval will be required for the dividend. However, a simple majority vote will be necessary to approve the capital return, and a special majority will be needed for the proposed delisting from the ASX. A shareholder meeting is anticipated in January 2026 to seek these approvals, signaling a critical juncture for investors.
Delisting and Future Outlook
Once the dividend and capital return are completed and all liabilities settled, Excelsior plans to delist from the ASX. This move effectively closes the chapter on its public company status after more than three decades since its 1993 listing. The delisting will mark a significant transition, reflecting the company’s shift away from public markets and the culmination of its investment realisation strategy.
While the announcement provides clarity on the company’s immediate plans, the precise financial impact on shareholders remains to be seen. The board has committed to keeping the market informed as these processes unfold.
Bottom Line?
Excelsior’s settlement and planned capital return set the stage for a transformative exit from the ASX, but key details remain to be finalised.
Questions in the middle?
- What will be the final amounts declared as dividend and capital return?
- How will shareholders respond to the proposed delisting and capital return at the upcoming meeting?
- What are the broader implications for Excelsior’s remaining investments and future strategy post-delisting?
