Excelsior to Liquidate and Delist After London City Withdraws Federal Court Action

Legal Dispute Concluded

London City Equities Limited has formally ended its legal proceedings against Excelsior Capital Limited, withdrawing its Federal Court action with immediate effect. The trial, originally scheduled for February 2026, will no longer proceed following an agreement reached between the two parties. This development marks a significant step in resolving a dispute that has been closely watched by shareholders and market observers alike.

A Company-Managed Liquidation Plan

Under the terms of the settlement, Excelsior Capital has committed to a company-managed liquidation process. This approach aims to convert assets into cash, settle outstanding liabilities, and distribute a fully franked dividend to shareholders, maximising the benefit of available franking credits. The liquidation will also involve a pari passu return of capital, ensuring equitable treatment of shareholders, and culminate in Excelsior’s delisting from the Australian Securities Exchange by 30 June 2026.

Strategic Implications for London City

London City’s directors have expressed cautious optimism about the outcome. While the precise financial impact on London City’s portfolio remains unclear due to limited public information on Excelsior’s financial position, the company anticipates benefits from increased cash holdings and enhanced franking credit levels. Importantly, the resolution allows London City to avoid the substantial legal costs associated with prolonged litigation and to redirect its focus towards growing its investment portfolio.

Shareholder Considerations and Market Impact

The decision to pursue a company-managed liquidation rather than a formal liquidation process reflects a preference for a more controlled and potentially cost-effective outcome. London City’s directors noted that this approach aligns with shareholder interests, particularly those advocating for an early liquidation of Excelsior. The move is likely to be welcomed by investors seeking clarity and a tangible return amid uncertainty.

Looking Ahead

As the liquidation process unfolds over the coming months, stakeholders will be watching closely for updates on asset realisation and dividend declarations. The timeline set for completion by mid-2026 provides a clear framework, but execution risks remain. For London City, the settlement represents both a resolution of a complex dispute and a strategic pivot towards future growth opportunities.