Why is this ASX 300 share delisting from the Australian share market?

The company doesn't feel it is in the best interests of shareholders to remain on the ASX.

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The Janus Henderson Group PLC (ASX: JHG) share price is having an interesting session.

In morning trade, the ASX 300 fund manager's shares were up 4.5% to $38.02.

This was driven by a solid rise in the company's NYSE shares overnight following the release of its third-quarter update.

Its shares have now eased back a touch and is up 1.5% to $36.91.

What happened during the quarter?

For the three months ended 30 September, Janus Henderson reported a 4% quarter on quarter decline in assets under management (AUM) to US$308.3 billion

On the bottom line, third quarter diluted earnings per share was of US$0.56 or US$0.64 on an adjusted basis. The latter was US$0.11 ahead of consensus estimates.

This allowed the ASX 300 share's board to declare a quarterly dividend of US$0.39 per share and approve a new share buyback of up to US$150 million.

Say goodbye to this ASX 300 share

Taking some of the shine of the result for local investors was news that the ASX 300 share plans to delist from the Australian share market. It explained:

Janus Henderson is seeking to delist from the ASX due to the ongoing decline in CDI ownership, low volumes traded and limited index inclusion of CDIs traded on the ASX compared to that of the Company's listing on New York Stock Exchange (NYSE). The CDIs held on the Australian register have declined to approximately 5.5% of the Company's total issued share capital as of September 2023.

The board of directors of the Company believe that the benefits to the Company's securityholders of maintaining the ASX listing no longer outweigh the financial, administrative and compliance obligations and costs associated with maintaining the ASX listing and that maintaining the ASX listing is no longer in the best interests of the Company or the Company's securityholders as a whole.

Shareholders have a couple of options before the planned suspension date of 4 December. They are selling their CDIs on the ASX or converting them into NYSE-listed shares.

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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