Indonesian telco and satellite operator Indosat has announced it will delist its American Depositary Receipts (ADRs) from the New York Stock Exchange on or about 16 May 2013.
It will then terminate the deposit agreement on 24 July 2013.
In a statement,…
Indonesian telco and satellite operator Indosat has announced it will delist its American Depositary Receipts (ADRs) from the New York Stock Exchange on or about 16 May 2013.
It will then terminate the deposit agreement on 24 July 2013.
In a statement, Indosat explained that the “ADR programme was originally undertaken in 1994 in order to provide access to liquidity from investors unable to invest directly in the Indonesian domestic market.”
However, the satellite operator explained that, following a review of the listing, the company’s board of directors and board of commissioners agreed that the Indonesian Stock Exchange (IDX) would be sufficient for the company’s future capital needs.
The delisting from NYSE is also expected to reduce administration costs.
Commenting on the move, Indosat CEO Alexander Rusli said: “The IDX now benefits from a sophisticated international investor base and the vast majority of our existing institutional ADR holders also hold IDX listed shares.
“The delisting of our ADRs is an example of our ongoing cost saving initiatives and efforts to improve the administrative efficiency of the business.”
Prior to the delisting, Indosat said that the ADRs will remain fully fungible with the IDX listed shares. After the delisting, investors will still be able to buy and sell shares through the IDX.
Owners of ADRs have until 24 July to decide whether they would like to retain their shares.
Indosat also said it intends to terminate the registration of its shares with the US SEC in accordance with applicable US law and regulations.
The company operates the satellites Palapa-D and Palapa-C2, located at 113E and 150E respectively and covering Southeast Asia.
They both carry C-band and Ku-band transponders.
