Infosys gets nod to delist from Euronext Paris, London

Infosys, the second largest IT services company, on Monday said its proposal for voluntary delisting of its American Depositary Shares (ADSs) from Euronext's Paris and London exchanges has been approved by the Board of Directors of the two bourses.

Infosys announced its plan to delist the ADSs in March on account of the low average daily trading volume of Infosys ADS on these exchanges, which is not commensurate with the related administrative requirements.

The company started trading on Euronext Paris and Euronext London in February 2013. In a regulatory filing, Infosys stated, "The voluntary delisting of its ADS' from the Euronext Paris and Euronext London exchanges has been approved by the Board of Directors of Euronext Paris SA and by Euronext London Ltd," states Infosys.

Infosys is expected to begin the sales facility on June 18 and end on June 29. The last day of trading of Infosys ADSs on Euronext Paris and Euronext London will be July 4 and will be delisted the following day.

During the five-year period of the listing, the average daily trading volume of Infosys ADSs on Euronext Paris and Euronext London were significantly lower than its average daily trading volume on the New York Stock Exchange (NYSE).

"The delisting procedure will allow Infosys ADS' listed on the Euronext Paris and Euronext London exchanges to be sold on the NYSE. A sales facility will be provided to the holders of Infosys ADS' trading on the Euronext Paris and Euronext London exchanges..." it said.

The company also stated that there will be no change to its Infosys share/ADS count, capital structure or float as a result of the delisting from the above exchanges. Also, Infosys ADSs will continue to be listed on the NYSE.

Holders of such shares can choose to participate in the sales facility to sell their ADSs on the NYSE in accordance with Euronext Paris and Euronext London rules, Infosys said.

If they choose otherwise, they can continue to keep their ADSs and be able to trade them on the Euronext Paris and Euronext London exchanges until the date of completion of the proposed delisting and only on the NYSE thereafter.