Norsk Hydro plans NYSE delisting due to low volume

23 October 2007 10:46  [Source: ICIS news]

MUMBAI (ICIS news)--Norsk Hydro will delist from the New York Stock Exchange (NYSE) finding no grounds to continue listing there as in the past 12 months only 3% of trading in the company's stock occurred in the US, it said on Tuesday.


"Internationalisation of capital markets and the introduction of international financial reporting standards … have also significantly reduced the need for and benefit of multiple stock exchange listings," the Norwegian aluminium group added.


Hydro would also terminate its registration and reporting obligations with the US Securities and Exchange Commission (SEC), it said.


It no longer bore any outstanding SEC registered debt, as all notes and debentures had been assumed by StatoilHydro as part of its merger with Statoil, the company said.


While 15% of Hydro stock was held by US investors, only 5% of its total shares were held through the American Depositary Receipt (ADR) programme, it added.


"The delisting and deregistration will enable us to simplify financial reporting processes, while maintaining the same high-quality financial reporting and disclosures," said John Ottestad, company CFO.


"Corporate governance will not be affected, as important governance bodies such as the board audit committee will remain, in addition to an adequate level of internal controls," he added.


The company's main listing was in Oslo and in the future the shares would continue to be listed there and in London following other planned delistings from Paris, Frankfurt, Hamburg and Dusseldorf, Hydro said.

By: Aaron Rodrigues
+65 6780 4359

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