Delisting of Singtel shares from ASX

REASONS FOR DELISTING FROM THE ASX

Singtel delisted from the ASX on 5 June 2015.

 

In April 2015, the Singtel Board requested, and received approval from the ASX, to delist from the ASX for the following reasons:

 

  1. the number of Singtel CDIs on issue had declined significantly and, as at 31 March 2015, represented only approximately 137 million of the 15.94 billion Singtel Shares issued, or 0.86% of Singtel’s issued capital;

     

  2. daily trading volumes and liquidity of Singtel CDIs on the ASX were very low. During the twelve months to 31 March 2015, the number of Singtel CDIs traded on the ASX accounted for only 6% of all Singtel Shares traded. This reflected institutional investors’ preference to hold and trade Singtel Shares on its home exchange, the SGX;

     

  3. with little demand to drive liquidity in its CDIs, Singtel's weighting in the S&P/ASX200 index had been reduced to approximately 0.03% as at 31 March 2015. This further diminished the broader market appeal of Singtel CDIs. There was increased likelihood that Singtel’s index weighting would be further reduced over time; and

     

  4. after careful consideration, the Singtel Board had determined that there were minimal shareholder benefits from maintaining Singtel’s listing on the ASX. The delisting would also have the effect of reducing the costs arising from dual listing requirements.

 

KEY DATES FOR THE DELISTING PROCESS

 

Date    Event
29 May 2015 Suspension Date – effective date of suspension in trading of Singtel CDIs on the ASX. CDI holders were not able to trade their CDIs on the ASX after the close of the ASX market on this date.
5 June 2015 Delisting Date – effective date of removal of Singtel from the official list of the ASX.
9 June to 6 July 2015 Voluntary Sale Facility Period
7 to 13 July 2015 Compulsory Sale Process Period
End-June to end-July 2015 Settlement of Voluntary Sale and Compulsory Sale tranches, including payment of proceeds to CDI holders
   

 


OPTIONS AVAILABLE TO ASX SHAREHOLDERS

 

Five options were made available for ASX shareholders:

 

  1. Selling CDIs on the ASX in the usual manner up to and including 29 May 2015.

     

  2. Converting CDIs into underlying Singtel Shares and remaining a shareholder of Singtel.

     

  3. Converting CDIs into underlying Singtel Shares and selling those Shares on the SGX.

     

  4. Electing to participate in a Voluntary Sale Facility that Singtel put in place for the benefit of CDI holders. In that case, Computershare instructed a broker to sell the Singtel Shares underlying the CDIs on the SGX between 9 June 2015 and 6 July 2015 (although the date on which the shares were sold may not have fallen within this period).

     

  5. Doing nothing, in which case shares were subject to a Compulsory Sale Process whereby Computershare instructed a broker to sell the Singtel Shares underlying your CDIs on the SGX at some stage between 7 July 2015 and 13 July 2015 (although the date on which the shares were sold may not have fallen within this period).


FREQUENTLY ASKED QUESTIONS

  1. Why did Singtel delist?

     

    There were many reasons for the delisting. They are explained in full in the Information Circular sent to CDI holders in April 2015 (see link below).

     

    In summary, the delisting occurred due to:

     

    • Low levels of Singtel CHESS Depositary Interests (CDIs) held on ASX

       

    • Low trading volumes, liquidity and market demand for Singtel CDIs

       

  2. What does an ASX delisting involve for Singtel?

     

    Delisting is the process by which Singtel CDIs have been removed from the official list of the ASX and the CDIs no longer trade on the ASX.

     

    This means that CDIs held after 29 May 2015 were no longer able to be traded on the ASX.

     

  3. When were CDIs delisted?

     

    Singtel CDIs were officially delisted from the ASX on 5 June 2015.

     

  4. What options were given to CDI holders?

     

    Up until the close of business on Friday, 29 May 2015 CDI holders were able to trade on the ASX.

    Following that, Singtel CDI holders had a number of options that included:

     

    • converting their CDI holdings to shares, and to either hold or sell those shares on the Singapore Exchange; or

       

    • selling their CDIs on the Singapore Exchange through a Voluntary Sale Facility.

       

    The conversion and the Voluntary Sale Facility options closed in early July. The proceeds from the sale under the VSF were remitted to participants (in Australian dollars) later that month.

     

    For CDI holders who did not convert their CDIs, or participate in the Voluntary Sale Facility, their CDIs were sold as part of a Compulsory Sale Facility on the Singapore Exchange. Net proceeds were remitted to CDI holders in July 2015, based on the average price of the shares sold under the Compulsory Sale Process.

     

  5. Have Singtel's Shares continued to trade after delisting from the ASX?

     

    Yes, Singtel Shares continue to trade on the SGX; the delisting only related to Singtel CDIs quoted and traded on the ASX.

     

    Singtel, which is incorporated in Singapore, continues to be subject to the SGX Listing Rules, the Singapore Code of Corporate Governance and the relevant corporate and securities laws of Singapore.

     

    Copies of Singtel's press releases and other relevant corporate information will continue to be available on the company's website at http://info.Singtel.com and the company disclosure platform on www.sgx.com.

     

  6. How will dividends be paid on CDIs which were converted into Singtel shares?

     

    Shareholders who converted CDIs into Singtel Shares will receive dividends from Singtel in the same manner as other Singtel shareholders.

     

    Singtel pays dividends in Singapore dollars.

     

    The manner in which dividends are received will depend on whether or not the shareholder has set up their own direct CDP Securities Account, or if they have established a sub-account with a depository agent.

     

  7. When/how were shareholders paid for CDIs sold under the Voluntary Sale Facility (VSF)?

     

    The proceeds from the sale were remitted to VSF participants (in Australian dollars) in July 2015.

     

    Proceeds received were net of brokerage fees and applicable costs and reflected the market price and AUD/SGD exchange rate at the time of conversion. Brokerage fees were at a concessional rate of 0.10% of the value of Singtel Shares sold.

     

    Payments were made by direct credit into a participant’s nominated bank account or by cheque if no bank account had been recorded by Computershare.

     

  8. What price was received for CDIs sold under the Compulsory Sale Process?

     

    After the Compulsory Sale Process opened, all remaining Singtel CDIs were aggregated and sold on the SGX based on the prevailing market conditions.

     

    Net proceeds were remitted to CDI holders in July 2015, based on the average price of the shares sold under the Compulsory Sale Process.

     

    The proceeds received were net of brokerage fees and applicable costs and reflected the market price and AUD/SGD exchange rate at the time of conversion. Brokerage fees were at a concessional rate of 0.10% of the value of Singtel Shares sold.

     

    Payments were made by direct credit into a participant’s nominated bank account or by cheque if no bank account had been recorded by Computershare.

     

  9. What if I have more questions about Singtel’s delisting from the ASX?

     

    If you have an outstanding query in relation to the sale of your CDIs, please contact Computershare on 1800 501 501 (within Australia) or +61 (3) 9415 4029 (from outside Australia).

     

    For queries about being a Singtel investor, please contact the Singtel Investor Relations team at investor@singtel.com.

 

Releases Information Circular to CDI Holders dated 28 Apr 2015