Japanese consumer electronics mogul Panasonic Corporation announced yesterday that it will no longer trade in the New York Stock Exchange (NYSE) and will be pulling out its equities soon enough. It said it is set to apply to voluntarily de-list its American Depositary Shares in the NYSE, as well as remove registration of those shares from the Securities and Exchange Commission. It aims to complete delisting by July.
According to the company, one of the reasons it has decided to stop trading in the NYSE is because of the increase in volume of trading Japanese stocks by investors overseas. It also cites the similarities in disclosure standards by the United States and Japan. The expense of reporting requirements is said to have also played a role in the decision. “The continued listing on the NYSE is not economically justified taking into account the fact that the trading volume of Panasonic’s ADRs on the NYSE accounts for only a small fraction of the total trading volume of Panasonic’s shares.” said an official release.
Also yesterday, Panasonic President Kazuhiro Tsuga said that the company will spend 250 billion yen (approx. $2.65 billion) for the restructuring of its operations, which is aimed to be completed on 2015. It will involve rearranging 88 business units to form a more compact 49 units, which includes the transfer of its logistics to Nippon Express Co. Ltd. The restructuring will lessen the electronics aspect of the business and expand on the automotive and home products aspect.
[via International Business Times]