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Alibaba Pictures Group plans to delist in Singapore and trade only in Hong Kong
DUAL-LISTED Alibaba Pictures Group has been given the go-ahead to delist from the Singapore Exchange (SGX) mainboard, the board said on Thursday night.
After the planned delisting, shares would be publicly traded only on the Stock Exchange of Hong Kong; the board said the Hong Kong bourse is “more geographically aligned with the business operations” of the media company in mainland China.
Alibaba Pictures Group also cited a “significantly lower trading volume” of its shares in Singapore than in its primary listing in Hong Kong.
Trading only in Hong Kong will thus “not have a negative impact on the liquidity of the shares or the effectiveness of future fund-raising activities by the company, and will instead increase the shareholder value in the long term through improving the cost-effectiveness of the listing compliance of the company”, the board added.
The company added that it will give more updates to shareholders later on the timeline for the planned delisting, as well as the actions that investors here would have to take.
The Singapore Exchange is not objecting to the move as long as the company meets requirements, such as notifying investors here at least three months before the delisting, said the board.
Alibaba Pictures Group has told the Singapore Exchange that it will bear the relevant transfer fees for shareholders holding the shares through the Central Depository who want to transfer their shares ahead of the delisting, to either Hong Kong’s Central Clearing and Settlement System or the sub-account of a suitable securities broker.