Murdoch’s 21st Century Fox to delist from Australian stock market
09 Jan 2014
Rupert Murdoch's 21st Century Fox Inc is set to delist its shares from the Australian stock market to boost liquidity on the Nasdaq market as the billionaire further distanced himself from the country of his birth.
New York-based 21st Century Fox, plans to seek shareholders approval for the move at a special meeting in March or April, according to a statement by the company today. The company added the delisting could be complete by June.
According to Fox News, exiting the Australian exchange would simplify the media company's capital structure and enhance the liquidity of its stock. The news agency added, holders of shares listed in Australia would be able to switch to the company's Nasdaq-listed stock.
The change might allow Murdoch and his family to vote more of their 39.4 per cent voting stake, given that a number of Australian institutions had divested the stock from their funds, Bloomberg quoted a person with knowledge of the decision as saying.
The US Federal Communications Commission limits television station owners such as Fox to less than 25 per cent foreign control and in compliance, Fox suspends some voting rights for non-US stockholders.
The Murdoch family trust agreed to limit its voting stake at levels that would be proportional.
"Following the separation of our businesses in June last year, Twenty-First Century Fox has only limited operations in Australia and we believe that consolidating the trading of our stock in the world's largest equity market would provide improved liquidity to the company's stockholders and greater efficiencies for the company,"Murdoch said in a statement today.
Twenty-First Century Fox has plans for a preliminary proxy statement with the US Securities and Exchange Commission (SEC) for a special meeting.
"The company anticipates that the special meeting of stockholders will be held in March or April 2014 and that, if approved by stockholders and subsequently by the ASX, delisting from the ASX would occur approximately one month thereafter," Twenty-First Century Fox said in a statement today.
After the listing from the ASX is removed, all of Twenty-First Century Fox's Class A and Class B Common Stock would list on the Nasdaq market in New York.
Currently, Twenty-First Century Fox has a dual listing on the ASX and the Nasdaq.
Murdoch's News Corp split last year, creating a publishing arm including Australian pay TV assets and the more profitable 21st Century Fox TV and movie operations (See: News Corp's board okays splitting news and entertainment businesses).
