Matav to voluntarily delist from NASDAQ
Will cancel ADR program, shares to trade exclusively on TASE
Matav-Cable Systems Media Ltd. (NASDAQ, TASE: MATV) intends to delist voluntarily from the Nasdaq National Market and to end its American Depositary Receipt (ADR) program. Matav intends to file Form 15 with the U.S. Securities and Exchange Commission (SEC) to terminate the registration of its ADRs and Ordinary Shares, thereby suspending its obligation to file annual and other reports with the SEC
Matav is one of Israel's three cable television providers, serving approximately 265,000 subscribers
On February 24, 2005, Matav initially announced its intention to delist voluntarily from the Nasdaq National Market and to terminate its ADR program, but delayed the implementation by a year.
Matav's plan to delist from Nasdaq and deregister its ADR's was made after consideration of various factors, including the limited number of Matav's U.S. shareholders of record, and the low trading volume of Matav's shares on Nasdaq. Over the past three months, average daily trading volume of the firm's shares was around $5,500.
Apparently the majority of Matav's shareholders have chosen to trade the shares on the TASE.
As a result of the delisting, Matav expects to cut the high costs associated with being a "reporting company" under the U.S. securities laws, including costs arising from compliance with the provisions of the Sarbanes-Oxley Act.
Shares in Matav rose 5.9% yesterday on NASDAQ, to $13.50, erasing its losses since the beginning of 2006.
Matav?s market capitalization is about NIS 1 billion.