The board of directors of Luxottica Group Plc has decided to initiate the procedure for the delisting from the New York Stock Exchange of the group's American Depositary Shares (ADSs), traded through American Depositary Receipts (ADRs), and for converting the current ADR programme from Level III to Level I, in order to allow for over-the-counter trading of its ADRs in the USA.
There are several reasons for this decision.First of all, the Italian stock market has gradually turned into the chief negotiation hub for the group's shares: between 1st May 2016 and 1st May 2017, US transactions accounted for only 3.7% of Luxottica's global daily average transaction volume; secondly, being listed on the NYSE is highly expensive and, last but not least, the delisting will also ensure Luxottica greater efficiency in terms of the ongoing merger with Essilor.
"Delisting from the NYSE is part and parcel of the group's wider process of organisational streamlining initiated in the last couple of years, especially taking into account the relatively low transaction volume in the USA, and will generate savings and benefits for all shareholders," said Leonardo Del Vecchio, Executive President of Luxottica. "The decision has no impact whatsoever on our strategic vision for the USA, which still remain our principal market. Nor will our constant efforts in favour of our US shareholders be hampered, since the group's shares will continue to be traded on the Italian Stock Exchange, ensuring sufficient levels of cash flow without impairing the group's ability to access capital markets."
With regards to the merger with Essilor, Luxottica's board has today approved a series of changes to its stock option and performance share programmes.
