SEOUL, Jul. 21 (Korea Bizwire) — Samsung C&T Co., a construction and trading arm of Samsung Group, said Monday that it plans to delist its depositary receipts (DRs) traded on the British stock market.
In a regulatory filing, Samsung C&T said it will report its plan to the British financial authorities this week.
The DRs, or certificates of stock ownership that are traded overseas, have been traded on the London Stock Exchange.
“The DRs are being delisted because trading volume had been marginal since 2013 and also for the sake of convenience in the company’s administrative procedures,” said an official at Samsung C&T.
The move came after shareholders of Samsung C&T and its sister firm, Cheil Industries Inc., approved their merger last week in the face of a challenge by U.S. hedge fund Elliott Associates, which claimed the proposed merger hurts shareholders of Samsung C&T.
The deal was widely viewed by many as a step crucial to a smooth transfer of managerial rights for South Korea’s largest conglomerate, as the group’s owner, Lee Kun-hee, has been bedridden since May last year.