Satyam to delist from NYSE, ADR takes a tumble

Satyam Computer Services Ltd has notified the New York Stock Exchange (NYSE) that it plans to delist its American depositary receipts (ADRs) from the exchange.

In accordance with the rules and regulations of the US Securities and Exchange Commission (SEC), the company intends to file a Form 25 (Notification of Removal from Listing under Section 12(b) of the Securities Exchange Act of 1934) with the SEC on or about October 4, 2010.

It expects the delisting of its ADRs from the NYSE to be effective on or about October 14, 2010.

After the delisting, the ADRs would continue to trade in the over-the-counter (OTC) market.

In addition, throughout this period and in the future the equity shares underlying the ADRs will continue to be listed on the BSE and the NSE.

The company is currently late in filing its annual report on Form 20-F for the year ended March 31, 2009.

It was notified by the NYSE of its non-compliance and given until October 15, 2010 to make this filing, representing the maximum time period available under the rules.

The company does not now anticipate that it will be able to file a 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 the NYSE’s rules.

Satyam is, however, engaged in the effort to restate the US GAAP financial statements given the pending completion of Indian GAAP financial statements.

Vineet Nayyar, chairman, Satyam, said, “Due to our late SEC filings, which are among the unfortunate results of the misdeeds of former management, we are delisting from the NYSE. Keeping in view the paramount interest of the investors, our objective is to enable the ADRs to be quoted without interruption in the US domestic over-the-counter market so that the investors can continue to trade the ADRs throughout the transition period and beyond. 

We remain committed to our US investors and we are as keen as ever to serve the needs of US customers.”