Delisted companies are companies that have been removed from the Australian Stock Exchange (or the state-based exchanges), Newcastle Stock Exchange or the Bendigo Stock Exchange.
Companies are delisted for the following reasons:
- They have solvency problems and go into administration,
- Because they are acquired by another company,
- They merge with another company,’
- The entity is re-domiciling to another jurisdiction and intends to remove its listing from ASX to an overseas securities exchange as part of that transaction,
- The entity has its primary listing on another exchange and no longer requires a secondary listing on ASX,
- The directors of the entity consider that the prices at which its securities are trading on ASX are materially lower than the underlying value of its net assets and the entity is intending to provide security holders wishing to sell their holdings with an alternative mechanism to liquidate their holdings at a price closer to their net asset backing,
- The directors have determined that due to the size of the company, and the costs of being listed, it’s in the best interests of the company to delist.
- ASX delists the entity as it is unwilling to comply with, or breaks, any ASX listing rule.