Satyam Computer said on Tuesday it would delist its American Depositary Shares from NYSE Euronext in Amsterdam due to financial and legal pressures and has started the process for the same.
Post delisting from Euronext Amsterdam, the firm's shares are expected to remain listed on BSE, NSE in India and its ADSs on NYSE in New York. Satyam debuted on the Indian markets in 1991, and was listed on New York Stock Exchange in 2001. Last year, it launched a secondary listing on Euronext Amsterdam under NYSE Euronext's new “fast path” process for cross-listings in New York and Europe.
“Upon careful consideration of the advantages and disadvantages of its listing on Euronext Amsterdam, the board of directors of the company has come to the conclusion that the financial and legal burdens of a listing no longer justify a listing on Eurone xt Amsterdam”, Satyam said.
The company does not currently intend to delist from the BSE, NSE or NYSE, it said. The application for delisting is subject to the approval of Euronext Amsterdam, the company added. Satyam Computers after a turbulent phase since January this year is all set to be acquired by Tech Mahindra in a Rs 2,900-crore deal that includes a 20 per cent open offer to the public.
The holders of Satyam's ADSs would be able to participate in the public offer. Satyam shares yesterday closed at Rs 48.85, up 3.61 per cent on the BSE.