Optus parent company, Singtel, has revealed plans to delist from the ASX after the board determined there were minimal shareholder benefits from maintaining its listing.
If the approval goes ahead, Singtel expects it will be suspended from close of trade on May 29. However, it will continue to trade shares on the Singapore Exchange (SGX).
“In recent years, the number of Singtel CDIs on issue has declined significantly and, as of March 31, represented only approximately 137 million of the 15.94 billion Singtel shares issued or 0.86 per cent of Singtel’s issued capital,” the telco stated. “Daily trading volumes and liquidity of Singtel CDIs on the ASX are very low.”
Singtel maintains there will be no changes made to its business strategy and it remains committed to growing and investing in its Australian business.
With little demand in driving liquidity in its CDIs, Singtel’s weighting in the S&P/ASX200 index was reduced to about 0.03 per cent as at March 31. There is also the likelihood that the index weighting would reduce even further.
CDI holders will be given multiple options to convert their CDIs into Singtel shares listed on SGX and can continue to sell their CDIs ahead of the delisting process.
The delisting will also reduce the telco’s costs from dual listing requirements.
Singtel began trading on the ASX in September 2001 in connection with its Optus acquisition.