- Australia's second largest telecommunications provider Singtel-Optus is seeking to delist from the Australian Securities Exchange (ASX) due to low trading volume in the Australian market. According to a statement by Singtel, its business and operations in Australia will not be affected by the proposed delisting and there will be no change in Singtel’s business strategy as it remains committed to growing and investing in its Australian business. Singtel also said that since its acquisition of Optus, Singtel has invested over A$13 billion in building infrastructure and improving communication services in Australia.
The operator is dual-listed on the ASX and Singapore Exchange Securities Trading Limited (SGX). Singtel-Optus notes that its daily trading volumes and liquidity of Singtel CDIs on the ASX are very low. During the 12 months to Mar 31, 2015, the number of Singtel CDIs traded on ASX only accounted for 6 per cent of all of its shares traded. After careful consideration, the Singtel Board has determined that there are minimal shareholder benefits from maintaining Singtel’s listing on the ASX. The delisting will also have the effect of reducing the costs arising from dual listing requirements, added Singtel.
