Fixed-line telecommunications operator Telkom will terminate its secondary listing on the New York Stock Exchange by the end of August. It’s a move that has been broadly welcomed by analysts, who say the listing adds unnecessary costs and robs management of valuable time.
Telkom said in a JSE Sens news notice on Friday evening that it intends to file notice with the US Securities and Exchange Commission on or about August 17 with the intention of delisting 10 days later.
The filings it plans to make will deregister and terminate Telkom’s reporting obligations under the Exchange Act for its American Depository Receipts (ADR) programme and ordinary shares. Telkom’s reporting obligations will be suspended and the deregistration will be effective 90 days after the filing.
Telkom says it decided to delist in New York given the “global economic climate and the business imperative for Telkom to reduce its cost base”.
“The methodology employed and discipline gained from compliance with the Sarbanes-Oxley reporting requirements will be retained, where appropriate, to ensure strict corporate governance compliance and transparent financial reporting.
“Telkom is comfortable that the JSE provides sufficient access to capital from both SA and global investors.” — Staff reporter, TechCentral