The Telstra Corporation Ltd (ASX: TLS) share price will be on watch on Friday morning.
This follows the release of an announcement relating to its New Zealand listing.
What did Telstra announce?
This morning the telco giant revealed that its Board has decided to delist from the New Zealand stock exchange (NZX) and move to a sole listing on the ASX.
According to the release, the trading of Telstra shares on the NZX will cease at the close of business on Wednesday 16 June 2021.
After which, Telstra’s NZX shares will be transferred to the ASX and will commence trading on Monday 21 June 2021.
Why is it doing this?
Telstra explained that it was making the change partly to streamline its shareholder services and notes that New Zealand investors now have easy access to the ASX.
It explained: “Telstra is looking to simplify its administration and streamline its shareholder services. Telstra shareholders on the New Zealand register have been reducing over time and, given the accessibility of the ASX to New Zealand-based shareholders, Telstra considers that delisting from NZX is an appropriate step. Moving to a single listing on the ASX will progress these goals and we believe this is in the best interests of shareholders and the company.”
What impact will this have on shareholders in the future?
The company explained that there will be virtually no impact to both ASX and NZX shareholders from this.
In fact, when it comes to Telstra’s generous 16 cents per share fully franked dividend, the company will continue to pay this to shareholders in both currencies.
It commented: “Telstra will continue to pay dividends in Australian or New Zealand dollars. Shareholders must have either Australian or New Zealand bank account details registered by the dividend record date to be paid in that currency.”
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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Telstra Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
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