Johannesburg, South Africa, 02 October 2009 -- Global pulp and paper group Sappi Limited today informed shareholders that it had decided to delist from the London Stock Exchange (LSE). The cancellation of the UK listing is scheduled to occur at 08:00 (UK time) on 02 November 2009, at which stage the company’s ordinary shares will no longer be traded on the LSE.
Sappi originally listed on the LSE in 1992. UK registered shareholders currently hold approximately 0.036% of the company’s total issued capital. Taking into account the low volumes traded over the past years and the high associated costs, Sappi’s board of directors believes maintaining the LSE listing is not justified. Sappi’s primary listing is on the JSE and it retains a secondary listing on the NYSE.
Ralph Boëttger, Sappi chief executive officer, said “The low trading volumes do not warrant the listing and associated costs. The rationale for our 1992 listing on the LSE was to establish a presence in a key financial market to access funding for our European expansion and to position Sappi as a leading global pulp and paper company. Recent developments have also made it much easier for foreign shareholders to trade directly on the JSE and in addition we have our NYSE listing.”