Singtel Optus says farewell to the ASX and thanks for all the CDIs

Foreign Affairs Minister Julie Bishop with a koala due to go to Singapore to mark the 50th anniversary of Singapore’s independence. Bradley Kanaris/Getty Images

Singtel Optus, Australia’s second largest telco, is ending its relationship with the ASX but not its business in Australia.

Its CHESS Depository Interests (CDIs), the vehicle which Singtel used to trade on the local Australia market when it bought Optus, now represent only 0.86% of the Singapore-based company’s issued capital.

And trading volumes have been getting lower and lower. In the 12 months to March, the number of Singtel CDIs traded on the ASX accounted for only 6% of all Singtel shares traded.

And with little demand, Singtel’s weighting in the ASX200 index has been reduced to about 0.03%.

“The Singtel board has determined that there are minimal shareholder benefits from maintaining Singtel’s listing on the ASX,” the company said. “The delisting will also have the effect of reducing the costs arising from dual listing requirements.”

The delisting is expected on June 5. Current CDI holders can convert to ordinary shares listed in Singapore.

Singtel was admitted to the ASX in September 2001 when it acquired Optus.

The company says it has invested more than $13 billion in building infrastructure and improving communication services in Australia.

“There will be no change in Singtelā€™s business strategy as it remains committed to growing and investing in its Australian business,” the company said.

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