Singtel seeks to delist from Australian stock exchange

Singtel is seeking to delist from the Australian Securities Exchange (ASX) due to low trading volume in the Australian market.

The Singapore telco announced on Tuesday (Apr 21) that it has formally requested ASX to remove its CHESS Depositary Interests (CDIs) from the official list. If approved, trading in Singtel CDIs is expected to be suspended after the close of trading on May 29, and they are set to be removed from the official ASX list from Jun 5.

Singtel said its business and operations in Australia will not be affected by the proposed delisting. “There will be no change in Singtel’s business strategy as it remains committed to growing and investing in its Australian business,” said the telco in a news release.

The number of CDIs on issue had declined significantly, said Singtel. During the 12 months to Mar 31, 2015, the number of Singtel CDIs traded on ASX only accounted for 6 per cent of all of its shares traded.

“This reflects institutional investors’ preference to hold and trade Singtel shares on its home exchange, the SGX,” said the telco.

To help Australian investors, Singtel said CDI holders will be able to convert their CDIs into Singtel shares listed on the Singapore Exchange (SGX) on a 1:1 basis. They may also sell their interests in Singtel shares on SGX through Singtel-arranged sale facilities after the delisting.

Singtel was admitted to the official list of ASX in September 2001, in connection with its acquisition of Australian telco Optus.