The company explained that this decision was based on the low trading volume of the shares on the NYSE in combination with the high costs and administrative complexities associated with maintaining its listing and registration in the US.
Sappi added that, for the 12 months ended 28 August 2013, less than 1% of its average daily trading volume occurred on the NYSE, where the company had been listed since 1998. “Delisting from the NYSE is in line with Sappi’s strategy to reduce costs and improve efficiency,” said company CEO Ralph Boëttger. “As a South Africa-headquartered company, our primary listing will remain the JSE, as it has been since 1937.”
The company said it remained fully committed to its US shareholders and the continued trading of its ordinary shares on the JSE would provide sufficient liquidity for all its national and international shareholders, as well as access to capital for Sappi.