PetroChina and Sinopec to Delist AD Shares from NYSE
PetroChina and Sinopec have announced that they have notified the New York Stock Exchange (NYSE) that they will apply for the voluntary delisting of their American depositary shares (ADS) from the NYSE under the U.S. Securities Exchange Act of 1934.
Both companies said they intend to file a Form 25 with the SEC on, or about, August 29 to delist their ADSs from the NYSE. PetroChina and Sinopec expect the delisting of the ADSs from the NYSE to become effective ten days thereafter.
“Based on a comprehensive evaluation of a number of considerations, including but not limited to the small percentage of H Shares represented by ADSs as compared to the total number of the H Shares and the total share capital of the company, the relatively limited trading volume of the ADSs as compared to the trading volume of the H Shares on a worldwide basis, the considerable administrative burden for performing the disclosure obligations as necessary for maintaining the listing of the ADSs on the NYSE as a result of the differences in the regulatory rules of multiple listing venues … the board of directors of the company approved the delisting of the ADSs from the NYSE,” PetroChina said in a company statement.
Sinopec noted that the determination of the board was based on “several comprehensive considerations”. These also included “the small volume of the underlying H Shares of its outstanding ADSs compared to the total volume of its H Shares, the limited trading volume of its ADSs relative to the worldwide trading volume of its H Shares and the considerable administrative burden of maintaining the listing of the ADSs on the NYSE”.
At the end of November last year, CNOOC announced that it intended to deregister with the United States Securities and Exchange Commission (SEC) and terminate reporting obligations under the U.S. Securities Exchange Act of 1934. In the announcement, the company noted that the New York Stock Exchange LLC filed Form 25 with the SEC on October 12 and that the delisting of its American depository shares became effective following the close of the market in New York on October 22.
PetroChina describes itself as one of the major oil and gas producers and distributors in China, as well as a significant player in the global oil and gas industry. Sinopec Corp is one of the largest integrated energy and chemical companies in China, according to its website, and CNOOC describes itself as the largest offshore crude oil and natural gas producer in China and one of the largest independent oil and gas exploration and production enterprises in the world.
Earlier this month, Speaker of the House Nancy Pelosi and members of a congressional delegation arrived in Taiwan, which drew ire from the Chinese government. The visit was the first official visit to Taiwan by a Speaker of the United States House of Representatives in 25 years.
“In disregard of China’s grave concerns and firm opposition, Speaker of the U.S. House of Representatives Nancy Pelosi insisted on visiting China’s Taiwan region,” a China Foreign Ministry Spokesperson stated in response to the visit.
“This constitutes a gross interference in China’s internal affairs. It gravely undermines China’s sovereignty and territorial integrity, seriously tramples on the one-China principle, and severely threatens peace and stability across the Taiwan Strait,” the spokesperson added.
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