London Tunnels has decided to list its company in Amsterdam instead of London, where it had planned to flotter in the capital.
The company wants to turn the Kingsway Exchange Tunnels, an 8,000 sq metre network under Holborn, central London, into a brand new attraction that attracts 2 million visitors per year.
The group announced on Monday it was hoping to raise £30m through a listing on Euronext Amsterdam. It said it could take advantage of the size and scope of equity and capital markets in Europe by listing the Dutch capital.
The company had sent a letter to the London Stock Exchange in January stating its intention to list on the London Stock Exchange.
At the time, Angus Murray said that the tunnels were unique, and owned by a British firm, but built by the British Government for Britain’s defence. They can enhance London’s image as a top tourist destination.
The company’s change of heart is the latest blow for the LSE, after several high-profile companies chose to list in Europe or the US over London in the last few months.
Flutter, owner of Paddy Power, announced in May that it would be switching its primary listing from London to New York . UK Chip Designer Arm, on the other hand, chose to list last August on Wall Street after the government had failed to convince them to do so.
This has been partially offset by the announcement of plans for big players like the fashion retailer Shein and Raspberry Pi to list on LSE.
The Kingsway Tunnels were constructed in early 1940s for the purpose of sheltering up to 8,000 persons during the Blitz, but they were never used.
The Special Operations Executive was responsible for organizing espionage, sabotage and other operations in German-occupied Europe. It moved in during World War II and is believed to have been the inspiration for Ian Fleming’s James Bond novels.
In 1981, British Telecom took over ownership of the tunnels. The cable was the first secure transatlantic phone line that ran a hotline between the White House in Washington and the Kremlin, during the Cold War.
London Tunnels will buy the site next year from BT and open the attraction by 2027. The exhibits will celebrate the history of tunnels as well as reopening the deepest London bar that closed in the 1980s.
The float prospectus does list a few risk factors for the project. For example, it warns that the plans may be delayed if the project cannot obtain the planning permissions it requires.
The City of London Corporation gave the green light to the project last month. However, Camden is yet to give its approval.
List also includes the risks that age may affect the structural integrity of tunnels, that asbestos removal may take longer than anticipated, and that company may not be able to complete the leasehold acquisition by the agreed 30 June date.
London Tunnels explained its decision to move the listing by saying it could raise the £20m-£30m required over the first few development years. It said that it would raise an additional £120m through debt and equity in order to bring the tunnels into operation.
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