Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


Tranz Rail Holdings Limited To Delist From Nasdaq

3 May, 2002

Tranz Rail Holdings Limited today announced that it intends to terminate its American Depositary Receipt (ADR) programme in approximately 90 days, and at the same time de-list from NASDAQ.

The decision to de-list follows considerable recent changes to Tranz Rail's shareholding with almost 70% held in New Zealand, with a further 16% held by Australian institutions.

With the primary market for Tranz Rail shares now on the New Zealand Stock Exchange, there has been a resultant shift from trading on the US NASDAQ market.

NASDAQ held ADRs reached a high of 12 million (36 million ordinary share equivalents or 29% of total shares outstanding at the time) on issue at their peak in June 1997, but have dropped to around 2.1 million ADRs (6.3 million ordinary shares equivalent or 5% of total shares outstanding) on issue in March 2002.

As a result, liquidity of the Tranz Rail ADRs market has also fallen substantially from an average of around 1.2 million ADRs trading per month in 1997, to less than 45,000 per month in the most recent twelve month period.

Tranz Rail Chief Financial Officer Wayne Collins said that the size of the United States holdings no longer justifies the expense of maintaining a public market in the US.

"Tranz Rail appreciates the support of its ADR holders and expects they will understand the business rationale for the steps being taken," he said.

"Tranz Rail is again largely a New Zealand company and its current shareholding reflects this."

In connection with termination of the ADR program, Tranz Rail will be terminating its listing on NASDAQ, effective shortly before the effective date of the ADR termination. Until termination of the NASDAQ listing, holders of ADRs may sell their ADRs through their brokers.

ADR holders who wish to keep their Tranz Rail positions may convert their ADRs to ordinary shares by following the procedures set out in the Bank of New York notice of termination. The principal market for the ordinary shares is the NZSE, and any dividends on the ordinary shares (currently suspended) will be payable in NZ dollars.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half A Billion Accounts: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Half Full: Fonterra Raises Forecast Payout As Global Supply Shrinks

Fonterra Cooperative Group, the dairy processor which will announce annual earnings tomorrow, hiked its forecast payout to farmers by 50 cents per kilogram of milk solids as global supply continues to decline, helping prop up dairy prices. More>>

ALSO:

Results:

Meat Trade: Silver Fern Farms Gets Green Light For Shanghai Maling Deal

The government has given the green light for China's Shanghai Maling Aquarius to acquire half of Silver Fern Farms, New Zealand's biggest meat company, with ministers satisfied it will deliver "substantial and identifiable benefit". More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news