Singapore Telecommunications Ltd (CHESS) to leave the ASX: What shareholders need to know

Optus owner Singapore Telecommunications Ltd (CHESS) (ASX:SGT) to delist from ASX

| More on:
a woman

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Giant telco, Singapore Telecommunications Ltd (CHESS) (ASX: SGT) has announced that it is delisting from the ASX, but keeping its primary Singapore Stock Exchange (SGX) listing.

Singtel, as the company is known, owns Optus, Australia's number 2 telco. The company says that low volumes, liquidity and market demand indicate that institutional investors prefer to trade the company's shares on its home exchange rather than the Chess Depositary Interest (CDIs) on the ASX, and it has little reason to keep its ASX listing.

"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," the company said. Singtel added that the number of CDIs on issue had declined significantly, and only represented around 137 million of the 16 billion Singtel shares issued.

Singtel's weighting in the S&P/ASX 200 (Index: ^AXJO) (ASX: XJO) has shrunk to just 0.03% as well on the back of that.

Shareholders have a number of options they can pursue, including converting their CDIs into Singtel shares listed on the SGX on a 1:1 basis, or, sell their interests in Singtel shares on the SGX through Singtel-arranged sale facilities.

The company's ASX-listed CDIs will be suspended from close of trading on 29 May 2015, with no trading after this date. Singtel says it will have no impact on Optus operations in Australia, or its business strategy in Australia and remains committed to growing and investing in its Australian business. But it does raise a tiny suspicion that Singtel may be looking to exit Australia to focus on Asia.

What it will also do is remove another telco from the ASX, following the merger between Vocus Communications (ASX: VOC) and Amcom Communications Ltd (ASX: AMM), and the takeover of iiNet Limited (ASX: IIN) by TPG Telecom Limited (ASX: TPM).

Motley Fool contributor Mike King owns shares of Amcom Telecommunications Ltd., TPG Telecom Limited, and Vocus Communications Limited. You can follow Mike on Twitter @TMFKinga. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on ⏸️ Investing

Close up of baby looking puzzled
Retail Shares

What has happened to the Baby Bunting (ASX:BBN) share price this year?

It's been a volatile year so far for the Aussie nursery retailer. We take a closer look

Read more »

woman holds sign saying 'we need change' at climate change protest
ETFs

3 ASX ETFs that invest in companies fighting climate change

If you want to shift some of your investments into more ethical companies, exchange-traded funds can offer a good option

Read more »

a jewellery store attendant stands at a cabinet displaying opulent necklaces and earrings featuring diamonds and precious stones.
⏸️ Investing

The Michael Hill (ASX: MHJ) share price poised for growth

Investors will be keeping an eye on the Michael Hill International Limited (ASX: MHJ) share price today. The keen interest…

Read more »

ASX shares buy unstoppable asx share price represented by man in superman cape pointing skyward
⏸️ Investing

The Atomos (ASX:AMS) share price is up 15% in a week

The Atomos (ASX: AMS) share price has surged 15% this week. Let's look at what's ahead as the company build…

Read more »

Two people in suits arm wrestle on a black and white chess board.
Retail Shares

How does the Temple & Webster (ASX:TPW) share price stack up against Nick Scali (ASX:NCK)?

How does the Temple & Webster (ASX: TPW) share price stack up against rival furniture retailer Nick Scali Limited (ASX:…

Read more »

A medical researcher works on a bichip, indicating share price movement in ASX tech companies
Healthcare Shares

The Aroa (ASX:ARX) share price has surged 60% since its IPO

The Aroa (ASX:ARX) share price has surged 60% since the Polynovo (ASX: PNV) competitor listed on the ASX in July.…

Read more »

asx investor daydreaming about US shares
⏸️ How to Invest

How to buy US shares from Australia right now

If you have been wondering how to buy US shares from Australia to gain exposure from the highly topical market,…

Read more »

⏸️ Investing

Why Fox (NASDAQ:FOX) might hurt News Corp (ASX:NWS) shareholders

News Corporation (ASX: NWS) might be facing some existential threats from its American cousins over the riots on 6 January

Read more »