Dubai: China Security & Surveillance Technology Inc (CSST), an integrated surveillance and safety solutions provider of mainland China, yesterday said it was delisting its shares from the Dubai bourse.
CSST joined the Dubai International Financial Exchange (DIFX) in 2008, becoming the first company from China to join the bourse, which was later renamed Nasdaq Dubai.
The company listed its ordinary shares on Nasdaq Dubai in a secondary listing. Its primary listing is on the New York Stock Exchange. CSST did not give any specific reason for its decision to delist.
The company said in a statement that it had notified Nasdaq Dubai in writing of its intention to voluntarily delist its securities from the Official List of the exchange effective from the close of trading on July 18, 2011.
"An application has also been made for immediate suspension of listing until such time as the delisting of its common stock on Nasdaq Dubai becomes effective," a CSST statement said.
Advance notice
Under Section 40.3 of the listing rules of Nasdaq Dubai, an issuer with a primary listing on another exchange may voluntarily withdraw its securities from secondary listing on Nasdaq Dubai if it gives Nasdaq Dubai at least 60 calendar days' advance written notice.
Nasdaq Dubai, the sole international capital market in the Middle East, yesterday confirmed the suspension of trading of CSST shares.
"Nasdaq Dubai announces that it has suspended trading in the shares of China Security & Surveillance Technology Inc with immediate effect at the request of the company. The company has also notified Nasdaq Dubai that it intends to delist the shares on or about 21 July 2011. The shares are expected to remain suspended until such time as the delisting takes effect," Nasdaq Dubai said in a statement posted on its website.
CSST did not give any specific reasons for its withdrawal from Nasdaq Dubai.
"The board unanimously determined that the proposed delisting and suspension of listing were in the best interests of the company and its stockholders," the company statement said.
Sources close to CSST said that the company is going through a management buyout in which the company's management is intending to acquire the entire shareholding of common shareholders.
Secondary listing
The company's common stock has been secondarily listed on the Dubai bourse a since October 2008.
After the delisting from Nasdaq Dubai, the stock will continue to be listed on its primary market, the New York Stock Exchange.
"The board believes that a delisting from Nasdaq Dubai and preceding suspension of listing of the company's common stock on Nasdaq Dubai will not have a material impact on the stockholders, its current relationships with employees, customers or suppliers, or its existing financing arrangements," a statement from CSR said.
Based in Shenzhen, China, CSST is primarily engaged in the manufacturing, distributing, installation and servicing of surveillance and safety products.
