MUNICH — Recovered carbon black producer Pyrolyx A.G. is planning to delist its shares in Germany and consolidate all share trading onto the Australian Stock Exchange (ASX) by the end of March 2020.
Currently, Pyrolyx shares are listed on the stock exchanges in Frankfurt and Duesseldorf, as well as the the ASX, under the ticker PLX (ASX: PLX).
The Munich-based tire pyrolysis company, which is in the middle of transferring its operations to North America, said the decision to consolidate the trading of its shares was made to serve the interests of its shareholders.
"Since the majority of Pyrolyx's shareholders are Australian, the company has determined that the most appropriate listing to maintain is the ASX listing," Pyrolyx said.
The objective of this strategic change, Pyrolyx explained, is to reduce the cost and complexity of multiple listings, which result in varying requirements between German and Australian capital markets law.
Another potential benefit is that consolidating trading onto one exchange may result in increased liquidity, Pyrolyx added.
All holders of Pyrolyx shares will be able to convert their holding of shares into CDIs (Crest depository interest) at zero cost through a conversion process, known as transmuting.
According to the company's IPO prospectus dated June 2017, CDIs represent the beneficial interest in the underlying shares in a foreign company, like Pyrolyx, and can be traded on the ASX in the same manner as shares of Australian companies listed on the ASX.
"The delisting of Pyrolyx in Germany was considered after a number of major shareholders, representing in aggregate the majority of shares issued, requested management to consider a German delisting," Pyrolyx CEO Michael Triguboff said.
Pyrolyx's business operations will remain unaffected by this decision, Mr. Triguboff added.