United Plantations Bhd plans to delist its shares from Nasdaq OMX Copenhagen A/S (Nasdaq CPH) and seek to transfer them to the Main Market of Bursa Malaysia, with completion slated by the end of this year, The SunDaily reported.
It is also proposing an extension of its share buy-back programme to include buy-back of United Plantations shares listed on Nasdaq CPH. This would enable the group to purchase its own shares on Nasdaq CPH as well as on Bursa Malaysia when appropriate and at market prices which it views favourable.
In a filing with Bursa Malaysia yesterday, United Plantations said it will seek approval of shareholders at the forthcoming EGM on Nov 12, 2013.
United Plantations was listed on Nasdaq CPH on Feb 28, 1932 and was subsequently listed on Bursa Malaysia on Oct 8, 1969.
United Plantations said the reason for the listing on Nasdaq CPH was that the group was founded by a Dane, Aage Westenholz, and that a significant number of the shareholders were Danish.
“(However,) since the listing of United Plantations shares on Bursa Malaysia in 1969, the number of shares traded on Bursa Malaysia has increased, and the number of shares traded on Nasdaq CPH has decreased,” the group said.
As at Oct 14, 2013, United Plantations has some 3,400 shareholders holding a total of 198.57 million shares or 95.4% of the group’s share capital that are traded on Bursa Malaysia.
At the same time, some 900 shareholders holding 9.56 million United Plantations shares or 4.6% of the group’s share capital are traded on Nasdaq CPH.
“The group considers that maintaining the listing on Nasdaq CPH is no longer in the interests of the group and shareholders of United Plantations (because) only 4.6% of the group’s share capital is traded on Nasdaq CPH,” said United Plantations.
“The shares trading on Nasdaq CPH has (also) become relatively inactive compared with the
trading on Bursa Malaysia. In 2010 to 2012, the annual trading volume on Bursa Malaysia has been 10-23 times higher than on Nasdaq CPH,” it added.
United Plantations estimates that the proposed delisting from Nasdaq CPH will result in a total savings of RM500,000 per year for the group in relation to the listing fees, compliance and administration cost.
“Currently, United Plantations has to comply with rules and reporting requirements applicable for companies listed on both stock exchanges.
“Therefore, the migration of the United Plantations shares from Nasdaq CPH to Bursa Malaysia will eliminate the need to comply with two sets of reporting standards based on the separate stock exchanges and thereby streamline the reporting for United Plantations,” it added.
Shares of United Plantations on Nasdaq CPH closed down 0.21% at DKK 47.90 yesterday, while that on Bursa Malaysia fell 0.3% to RM26.50.