Munich, Germany - Pyrolyx AG will consolidate all share trading onto one exchange ‐ Australian Stock Exchange (ASX) ‐ and will delist in Germany by the end of March 2020, the company announced 21 Aug.
Currently, Pyrolyx shares are listed on the stock exchanges in Frankfurt and Dusseldorf and the ASX under the ticker PLX (ASX: PLX).
The German tire pyrolysis company, which is in the middle of transferring its operations to North America, said the decision to consolidate the trading of its shares was made to serve the interests of its shareholders.
“Since the majority of Pyrolyx’s shareholders are Australian, the company has determined that the most appropriate listing to maintain is the ASX listing,” said Pyrolyx in a statement.
The objective of this strategic change, Pyrolyx explained, is to reduce the cost and complexity of multiple listings which result in varying requirements between German and Australian capital markets law.
Another potential benefit is that consolidating trading onto one exchange may result in increased liquidity, Pyrolyx added.
All holders of Pyrolyx shares will be able to convert their holding of shares into CDIs (Crest depository interest) at zero cost through a conversion process, known as ‘transmuting’.
According to the company’s IPO prospectus dated June 2017, CDIs represent the beneficial interest in the underlying shares in a foreign company, like Pyrolyx AG, and can be traded on the ASX in the same manner as shares of Australian companies listed on the ASX.
“The delisting of Pyrolyx in Germany was considered after a number of major shareholders, representing in aggregate the majority of shares issued, requested management to consider a German delisting," said Michael Triguboff, Pyrolyx AG CEO.
Pyrolyx’s business operations will remain unaffected by this decision, Triguboff added.