Twenty-First Century Fox said Thursday that it has initiated the process to be removed from the Australian Securities Exchange (ASX), a move it says will simplify its capital structure and provide more liquidity for its stock.
The move comes about six months after the former News Corp. split into two separate entities – Twenty-First Century Fox, which holds its cable television, broadcasting and movie studio assets, and News Corp., which includes its publishing assets including the Wall Street Journal and New York Post. News Corp., which still has substantial assets in Australia, said it would remain on both the NASDAQ and Australian exchanges.
The move has been expected for months. With no assets in Australia and a dwindling shareholder base on the continent, it made little sense for Fox to continue to be listed there. In a statement, Fox said that it would hold a special shareholders meeting in March or April to vote on the matter. Delisting from the ASX, which would require approval from a majority of shareholders, would occur about one month after the meeting. The content giant would continue to be listed on the NASDAQ Exchange.
“Today’s announcement is part of our ongoing agenda to simplify the operating and capital structure of our company,” chairman and CEO Rupert Murdoch said in a statement. “Following the separation of our businesses in June last year, 21st Century Fox has only limited operations in Australia, and we believe that consolidating the trading of our stock in the world’s largest equity market would provide improved liquidity to the company’s stockholders and greater efficiencies for the company.”
