UK publishing group, United Business Media (UBM) announced yesterday its plans to voluntarily cut its US share listing, to take effect at the close of trading on 22 March 2005.
The decision comes amidst weak trading in North America, and will see the company de-list from the Nasdaq national market and terminate its American Depositary Receipt (ADR) programme. In a statement UBM said: “This decision was based on the uneconomic nature of maintaining this very thinly traded security.”
Yesterday, UMB also said that it was examining ways in which it might terminate its Exchange Act registration, which would take effect next March, prompted by ADRs, which accounted for just 0.2% of its issued equity.
The company insisted, however, that it would retain a strong base of US shareholders, accounting for about 10% in total.
The move comes at a critical time for the company, which has lost one third of its cost base since 2000 as a result of the collapse of the outcome market. UBM delivered a positive trading statement last week, outlining plans for accelerating a major programme of off shoring and outsourcing, and for increased new product investment for 2005 (see United Business Media Delivers Positive Trading Statement).
Last week UBM also announced that David Levin would succeed Lord Hollick as the new chief executive officer, taking over the role in April 2005(see United Business Media Announces New Chief Executive).
Related Links
