Tuesday, global business and information technology services company Satyam Computer Services Ltd. (SAY: Quote) said it filed an application to delist its American Depositary Shares or ADS from NYSE Euronext, the regulated market of Euronext Amsterdam. When delisting is formalized, the company's ADSs will remain listed on New York Stock Exchange or NYSE and common shares will remain listed only on Bombay Stock Exchange Ltd. or BSE and National Stock Exchange of India Ltd or NSE.
Satyam's board of directors said that carefully considering the advantages and disadvantages of its listing on Euronext Amsterdam, the board come to the conclusion that the financial and legal burdens of a listing no longer justify a listing on Euronext Amsterdam.
Most recently, Tech Mahindra Ltd., a JV between British Telecommunication and Mahindra & Mahindra, has acquired the company that was in trouble due to an accounting fraud of about $1.6 billion engineered by founder Ramlinga Raju. Tech Mahindra agreed to buy a 31% stake at 58 rupees or US$1.16 a share, and would make a public offer to buy 20% more.
The government of India said that the sale of its controlling stake in Satyam would restore and boost the confidence of investors. The company has lost 80% of its market value on bourses since fraud was revealed in January.
SAY is currently trading at $2.02, down $0.23 or 10.22% on a volume of 3.9 million shares on the NYSE.
by RTT Staff Writer
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