Optus to delist from ASX

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Optus to delist from ASX

Optus' parent company Singtel has requested its de-listing from the Australian Securities Exchange.

The move already has all the regulatory and government approvals, including from the Foreign Investment Review Board, and only requires the ASX to sign-off on the intended 29 May trading suspension and 5 June delist.

Singtel will continue to trade publicly on the SGX, in its home country of Singapore. ASX shareholders will be offered a one-to-one conversion to SGX stocks or a sale arranged by Singtel.

The giant telco cited recent reduction of Australian share trading activity as a reason for the de-listing.

"As at 31 March 2015, [Singtel stocks on ASX] represented only approximately 137 million of the 15.94 billion Singtel shares issued, or 0.86 percent of Singtel’s issued capital," announced the company.

"During the 12 months to 31 March 2015, the number of Singtel CDIs traded on the ASX accounted for only 6 percent of all Singtel shares traded. This reflects institutional investors’ preference to hold and trade Singtel shares on its home exchange, the SGX."

The quiet trading activity has meant that Singtel's weighting on the S&P/ASX200 index has shrunk to 0.03 percent by the end of March, and would likely fall further as its "broader market appeal" was diminished.

The board also cited cost savings from removal of dual-listing requirements as a benefit of Singtel's exit from the ASX.

Singtel first entered the ASX in September 2001 upon its acquisition of Australia's second telco Optus.

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