Supervisory Board and Board of Management of Daimler AG (“ DAI ” ) to apply for the discontinuation of NYSE listing of its shares.
Daimler AG indicated in a press release that the company plans to discontinue their stock-exchange listing in New York (NYSE). According to Daimler, the delisting and deregistration is a consequence of changed investor behavior and consistently low trading volumes. Bodo Uebber, CFO of Daimler AG says,
“Daimler continues to place great importance on having an international shareholder base. At the same time, this step enhances our overall efficiency.”
AMG Market News/Source: Daimler AG – Stuttgart, May 14, 2010: The Supervisory Board and Board of Management of Daimler AG (stock – exchange symbol “ DAI ” ) have decided to apply for the discontinuation of the listing of its shares on the New York Stock Exchange (NYSE).
Bodo Uebber, CFO of Daimler AG, said:
“Daimler continues to place great importance on having an international shareholder base. The trading center for our shares, however, clearly is Frankfurt – and that is also the case for our international investors. Furthermore, this step will enhance our overall efficiency. The American sales market and our activities in North America remain as important as ever for Daimler.”
Daimler informed the NYSE by letter today of its intention to discontinue the listing of its shares as well as the 8.50% notes due January 18, 2031 of Daimler Finance North America LLC and the related Daimler guarantee. Daimler will submit a request for delisting also to the United States Securities and Exchange Commission (SEC). After the delisting has become effective, Daimler will also apply to the SEC for deregistration of all its securities registered with the SEC and termination of its reporting obligations under the U.S. Securities Exchange Act of 1934.
The main reason for discontinuing the NYSE listing and registration with the SEC is a significant change in the behavior of international investors, who now primarily trade in Daimler shares in Germany and through electronic trading platforms. Daimler’s trading volumes in the United States on the contrary have been consistently low and , over a twelve month period, amounted to an average of well below 5% of the worldwide trading volume .
Another objective is to reduce the complexity of financial reporting as well as administrative expenses and fees. The delisting is also the final step in Daimler’s efforts to reduce its number of stock-exchange listings.
Daimler AG will apply for delisting and deregistration in the near future. Independently of the delisting and deregistration, Daimler will maintain a high degree of transparency in its financial reporting and will continue to fulfill the requirements of international investors. “We remain in direct, close and open dialogue with our American investors, and our investor relations team and I will continue to be present on a regular basis in the U.S.,” stated Mr. Uebber.
Daimler has a strong presence in North America and will continue to work to further strengthen its market share and business operations there. In 2009, the region accounted for 25 percent of the Daimler Group’s worldwide revenue and almost every tenth Daimler employee worked in North America.
Daimler reserves the right to submit the aforementioned applications at a later date or to not to submit them at all or to change its plans in other ways. Daimler and Daimler Finance North America LLC have not arranged for the listing of the aforementioned securities on another U.S. securities exchange or for the quotation of such securities in a quotation medium in the United States.