Tuesday has brought big news for AMP’s New Zealand-based shareholders.
The post AMP (ASX:AMP) share price slides amid NZ delisting news appeared first on The Motley Fool Australia. –
The AMP Ltd (ASX: AMP) share price is falling this morning amid news the company is ditching the New Zealand Exchange (NZX) prior to its demerger next year.
The company will delist from the country’s exchange in February and all shares traded there will be automatically moved to the ASX.
At the time of writing, the AMP share price is 90.7 cents, 1.41% lower than its previous close.
For context, the S&P/ASX 200 Index (ASX: XJO) is up 0.03% this morning.
Let’s take a closer look at today’s news from the financial services company.
AMP share price falls amid plan to leave the NZX
Come early February, AMP will be a sole listed company, with its shares only available to trade on the ASX.
According to the company, delisting from the NZX will help it simplify its shareholder administration. In a letter to New Zealand-based shareholders, AMP says:
The number of AMP shareholders who hold shares on the New Zealand exchanged has significantly reduced over time. Given the accessibility of the ASX to New Zealand-based shareholders, AMP considers delisting from NZX is an appropriate step.
After the company leaves the NZX, AMP’s New Zealand investors will need to approach a broker with the ability to buy and sell on the ASX in order to trade their shares.
The AMP share price opened 1.03% lower in New Zealand today and has been trading flat since.
The delisting will go ahead prior to the company’s planned demerger during which its Private Markets business will be split from the company. That’s expected to go ahead in the first half of 2022.
According to the company, NZX Regulation Limited, an entity charged with the NZX’s regulatory functions, has approved the delisting.
Though, it’s still subject to AMP meeting certain conditions. Investors who trade the company’s stock through the NZX don’t need to do anything ahead of the delisting.
AMP plans to stop the trading of its shares on the NZX at 5 pm on Wednesday 2 February. It will delist on 4 February.
Any formerly NZX-listed stock will trade on the ASX from 7 February.
Following the delisting, AMP will still offer its dividend in New Zealand Dollars. It also offers dividends in Great British Pounds.
The post AMP (ASX:AMP) share price slides amid NZ delisting news appeared first on The Motley Fool Australia.
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