Due to inability in filing post-scam-tainted accounts in time.
Mahindra Satyam, the former Satyam Computer Services Ltd, today said it had notified the New York Stock Exchange (NYSE) of its intent to delist its American Depository Receipts (ADRs).
“Due to our late SEC (US Securities and Exchange Commission) filings, which are among the unfortunate results of the misdeeds of the former management, we are delisting from the NYSE. Keeping in view the interest of the investors, our objective is to enable the ADRs to be quoted without interruption in the US domestic over-the-counter (OTC) market, so that the investors can continue to trade the ADRs throughout the transition period and beyond,” Vineet Nayyar, chairman, stated.
Satyam Computers plunged into a crisis early last year following the admission of its founder-chairman, B Ramalinga Raju, to a massive accounting fraud.
Mahindra Satyam anticipates that the delisting of ADRS from NYSE will be effective on or before October 14. After the delisting, it expects the ADRs will continue to trade in the OTC market.
In addition, the company stated, throughout this period and in the future, the equity shares underlying the ADRs will continue to be listed on the principal Indian stock exchanges, Bombay Stock Exchange and National Stock Exchange.
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The company said it is was late in filing its annual report on Form 20-F for the year ended March 31, 2009. NYSE had notified its noncompliance and it was given time till October 15, the maximum period permitted.
“The company does not now anticipate that it will be able to file the restated US GAAP financial statements for the period ended March 31, 2009, on or prior to the October 15, 2010, compliance date in accordance with NYSE’s rules. Mahindra Satyam is, however, engaged in the effort to restate the US GAAP financial statements, given the pending completion of Indian GAAP financial statements,” said the company.
It had already announced that it would give its restated accounts (Indian GAAP) for 2009 and 2010 on September 29, its first since the corporate fraud unfolded at Satyam last year.