Sept. 9, 2013
/PRNewswire/ -- Sappi Limited ("Sappi" or the "Company") (NYSE: SPP) announces its intention to voluntarily delist its American Depositary Shares ("ADSs"), which are evidenced by American Depositary Receipts ("ADRs"), from the New York Stock Exchange ("NYSE"). Sappi will convert its current ADR programme into a Level I ADR programme to give current ADR holders the option to continue to hold ADRs. Level I ADRs are traded in
the United States
over-the-counter market as opposed to on a U S national securities exchange.
The Company's decision to delist from the NYSE is based on the low trading volume of its ADSs on the NYSE as well as the high costs and administrative complexity associated with maintaining its listing and registration in the U S. As of today, less than 1% of Sappi's shares are held through its ADR programme, and for the twelve months ended
28 August 2013
, less than 1% of Sappi's average daily trading volume occurred on the NYSE, where the Company has been listed since 1998.
Sappi believes that the resulting savings in costs and management time will benefit the Company and its shareholders. Sappi is fully committed to its U S shareholders and believes that the continued trading of the Company's ordinary shares on the JSE Limited (the "JSE"), previously known as the Johannesburg Stock Exchange, will provide sufficient liquidity to its shareholders, including its U S shareholders, and access to capital for the Company.
"Delisting from the NYSE is in line with Sappi's strategy to reduce costs and improve efficiency. As a
-headquartered company, our primary listing will remain the JSE, as it has been since 1937," commented Sappi Limited Chief Executive Officer
. "Sappi remains committed to high standards of corporate governance and transparency in financial reporting."
Sappi is subject to the JSE Listings Requirements, corporate governance standards as reflected in the guidelines contained in the King Report on Governance for
2009, as well as laws applicable to publicly listed companies in
. Sappi reiterates its commitment to provide investors with timely information regarding significant business and financial developments. The Company expects to continue to host regular investor relations activities, including quarterly earnings reporting, earnings calls, analyst meetings and investor roadshows.
Sappi delivered notice today to the NYSE that it intends to delist the ADSs. As disclosed in the notice to the NYSE, Sappi expects to file a notification of removal from listing on the NYSE via Form 25 with the U S Securities and Exchange Commission (the "SEC") on or about
19 September 2013
. The delisting of the ADSs should be effective on
30 September 2013
. The anticipated effective date may be delayed if the SEC postpones the effectiveness of the application to delist or for other reasons.
Concurrent with the delisting from the NYSE, Sappi also intends to file with the SEC a certification of termination of registration on Form 15F to terminate the registration of the ADSs under the U S Securities Exchange Act of 1934 (the "Exchange Act") and to suspend Sappi's reporting obligations with the SEC. Sappi expects that its obligation to file reports with the SEC will be suspended immediately upon the delisting of the ADSs from the NYSE. Sappi reserves the right to delay the filing of the Form 25 or Form 15F or withdraw either Form for any reason prior to their effectiveness.