Singtel bids farewell to ASX

KUALA LUMPUR: Singapore Telecommunications Ltd (Singtel) is seeking a delisting from the Australian Securities Exchange (ASX) where its securities are listed in the form of Chess Depositary Interests (CDIs).

The telecommunications firm told the Singapore Exchange (SGX) on Tuesday that the daily trading volumes and liquidity of Singtel CDIs on the ASX were very low, reflecting institutional investors’ preference to hold and trade Singtel shares on the Singapore bourse.

CDIs are units of beneficial ownership in foreign securities held by an Australian depositary entity, which holds the legal title. Using CDIs, sellers can transfer beneficial ownership of the securities instead of legal title.

The Singtel board has decided that there are minimal shareholder benefits from Singtel’s continued listing on the ASX.

According to Singtel, its CDIs are expected to be suspended from trading on the ASX on May 29, and delisting is expected to occur on June 5.

Its business and operations in Australia, where it has invested over A$13bil (RM36.5bil), will not be affected by the proposed delisting.

Singtel shares will continue to be listed and traded on the SGX.