IMI’s German unit plans to voluntary delist from New York Stock Exchange
A UNIT of Ayala-led Integrated Micro-Electronics, Inc. (IMI) intends to voluntarily delist its American depositary shares (ADS) from the New York Stock Exchange (NYSE) as part of cost-cutting measures.
Germany-based VIA optronics AG notified the NYSE on April 9 regarding its intent to voluntarily delist, IMI said in a stock exchange disclosure on Thursday.
The company also said that VIA will terminate its registration with the United States Securities and Exchange Commission (SEC) as well as its ADS program.
VIA is a supplier of interactive display solutions for multiple end markets. Its interactive display systems combine system design, interactive displays, software functionality, cameras, and other hardware components.
“VIA believes that delisting and deregistration of the ADSs from the US public markets will be more economical for the company, taking into account the low liquidity of its ADSs and the high costs of maintaining the NYSE listing and US SEC registration on an annual basis,” IMI said.
“VIA further believes that delisting and deregistration, and consequently the suspension of its US SEC reporting obligations, will allow the company to allocate resources more efficiently to execute its current business strategy by enabling its management and employees to focus more on managing its businesses and strengthening relationships with customers and business partners,” it added.
VIA also notified The Bank of New York Mellon, which acts as depositary under the ADS program.
Meanwhile, IMI said that VIA is anticipated to file a Form 25 with the US SEC in relation to the delisting and deregistration of its ADSs on or around April 19.
The last trading day of the company’s ADSs will be on or about April 29.
“Unless the Form 25 is earlier withdrawn by VIA, the delisting of the ADSs will be effective ten days after the filing of the Form 25,” IMI said.
Following the delisting and after the required filings, VIA is expected to file a Form 15 with the US SEC to deregister its ADSs and suspend its reporting obligations under US Securities Exchange Act of 1934.
“The process for delisting from the NYSE, suspending US SEC reporting obligations and terminating the ADS program is expected to take time, require filings and notifications, and compliance with certain requirements. As such, VIA cannot provide assurances yet as to whether or when these actions will be consummated,” IMI said.
“VIA had previously disclosed that it received notice from the NYSE that it is not currently in compliance with the continued listing standards of the NYSE,” it added.
IMI is the manufacturing unit of AC Industrial Technology Holdings, Inc., a wholly owned subsidiary of Ayala Corp.
IMI produces electronics for segments such as automotive, industrial electronics and aerospace. The company widened its net loss to $109.19 million last year as revenues dropped by 6% to $1.3 billion.
On Thursday, IMI shares dropped by 1.5% or three centavos to P1.97 per share. — Revin Mikhael D. Ochave
