SINGAPORE (June 18): Alibaba Pictures, the flagship unit of Alibaba Group’s entertainment business, has received confirmation from the Singapore Exchange Securities Trading Limited (SGX-ST) that it will be delisting its shares from the mainboard on Thursday.
The company cited several reasons for its proposed delisting. They include a strategic focus of resources in China, where the company’s core business activities are being carried out. Before its delisting, Alibaba Pictures was listed on both SGX and the Hong Kong Stock Exchange (HKSE).
The company says the maintaining a single primary listing would allow the Company to focus its efforts and resources on its business operations in the Middle Kingdom. Alibaba Pictures also feels that the Hong Kong Stock Exchange (HKSE) would be more geographically aligned with the company’s business operations.
The proposed delisting, according to the company, will also reduce the company’s administrative overhead and compliance obligations associated with the SGX-ST requirements and allow it to reduce its legal risks and compliance costs.
Lastly, Alibaba Pictures believes that consolidated trading will not have a negative impact on the liquidity of the shares due to the “significantly lower trading volume” on SGX-ST.
After the proposed delisting, the shares will only be traded on HKEX. The voting rights and entitlement to dividends of the CDP Depositors will not be affected.
Shares in Alibaba Pictures closed flat at HK$1 on Thursday.
