Singtel Requests Delisting From ASX
Singtel today announced it has begun the process of delisting from the ASX, citing low trading volume, liquidity and market demand, with Singtel shares to continue to be listed and traded on the Singapore Exchange.
“Singtel’s business and operations in Australia will not be affected by the proposed delisting,” Singtel stated. “Since its acquisition of Singtel Optus Pty Limited (Optus), Singtel has invested over A$13 billion in building infrastructure and improving communication services in Australia.
“There will be no change in Singtel’s business strategy as it remains committed to growing and investing in its Australian business.”
Singtel CHESS Depositary Interests (CDI) holders will be able to convert their Singtel CDIs into Singtel shares listed on the Singapore Exchange on a 1:1 basis or sell their interests in Singtel shares on the Singapore Exchange through Singtel-arranged sale facilities.
As reported by Fairfax Media, Singtel chief corporate officer Jeann Low has stated the move has come about following low trading volumes on the ASX.
“As at March 2015, CDIs account for less than 1 per cent of Singtel’s issued shares … and trading volumes of our CDIs have fallen to less than 2 million shares per day,” Fairfax reported Low as stating.
“The ASX has already advised us that it would be likely to agree to the removal of CDIs from the official list of the ASX subject to a number of conditions being satisfied. Singtel has agreed to comply with the conditions. We will promptly advise the market when we receive the formal approval.”
Fairfax reported Low as stating Singtel does not have plans to sell or float Optus or any other business division “at this point in time”.If the ASX gives its approval, Singtel is looking to cease trading on the ASX from May 29.