Company will remain listed on Australian exchange and will offer OTC shares.
Sims Metal Management Ltd. has announced its plans to voluntarily delist its American Depositary Receipts (ADRs) from the New York Stock Exchange (NYSE). The delisting of the company’s ADRs is expected to become effective on or about Oct.11, 2013, according to Sims.
The company’s ordinary shares are unaffected by the decision and will continue to be listed on the Australian Securities Exchange (ASX), according to a Sims news release. Following the NYSE delisting, the company’s securities will not be listed on any exchange in the United States, but in the near-term Sims says it expects to retain an ADR program in the U.S. on the “over-the-counter” (OTC) market.
The company also says it will eventually seek to deregister from the U.S. securities market. Deregistration cannot occur until criteria relating to average daily trading volume or the number of holders of the ADRs are met, which is not anticipated until October 2014 at the earliest, according to the company.
“When accomplished, deregistration will reduce administrative costs and the complexity that is associated with a dual listing in both the U.S. and Australia,” says Sims.
“Sims Metal Management will remain incorporated in Australia and will continue to be subject to the relevant corporate and securities laws of Australia and the United States,” the company also states.
Regarding holders of the ADRs, Sims says, “There is no requirement to sell ADR’s. Shareholders can choose to buy, sell or retain their ADRs following delisting from the NYSE. If shareholders choose to trade their shares in the future, they will do so via the OTC market.”
Sims Metal Management operates about 270 recycling facilities. During its fiscal year 2013 the company generated about 63 percent of its revenue from operations in North America.