Foreign companies continue to pull their listings off the New York Stock Exchange (NYSE). Some of the reasons for this exodus include the burden of complex regulatory requirements, listing fees, costs, lack of enough liquidity and no significant valuation benefits.
For example, German chemical giant BASF AG made the following statement when it listed on the NYSE:
“By listing BASF shares on the NYSE, we are not only emphasizing our global orientation, but also broadening our shareholder base and creating additional strategic options for making acquisitions on the American market.”
However when BASF decided to delist from the exchange it issued the following statement:
“Our decision to delist from the New York Stock Exchange underlines BASF’s continuous efforts to reduce complexity and costs,” said Dr. Jürgen Hambrecht, Chairman of the Board of Executive Directors of BASF Aktiengesellschaft.
Source: The Listing and Delisting of German Firms on NYSE and NASDAQ: Were There Any Benefits by Wolfgang Bessler, Fred R. Kaen, Philipp Kurmann, and Jan Zimmermann
Telecom Corp of New Zealand used to trade on the NYSE under the ticker NZT. The company’s stock last traded on the exchange on July 9, 2012. Currently it trades on the OTC exchange with the ticker NZTCY. The current dividend yield is 9.62%.
Japanese electronics maker Hitachi also delisted from the NYSE effective April 12, 2012. Now it trades on the OTC markets with the ticker HTHIY.
Germany’s Elster group, one of the world’s largest electricity, gas and water measurement and control providers, also delisted from the exchange this year and now trades on the OTC markets with the ticker ELTTY.
Update: Elster Group ADR – Terminated Effective 12/6/13. Details here.
Related:
More European Companies Delist from the NYSE
Disclosure: No Positions
