The dual delisting and share buyback proposals are set to be presented for shareholder approval at an extraordinary general meeting on November 7.
In a statement issued on October 9, DRA indicated that, given the company’s size and the low level of trading on the ASX and JSE, the board considered the financial, administrative, and compliance costs of maintaining both listings to be no longer justifiable. The company suggested that these high costs were not in the best interest of shareholders.
It was also mentioned that a significant amount of management’s time was being spent on addressing matters related to the ASX and JSE listings. If the delistings were approved, management would be able to focus on activities that could add more value to the company and its shareholders.
The proposed share buyback was said to offer shareholders an opportunity to realize some or all of their investment in DRA before the delisting. In the event that the delisting was not approved, the buyback would still provide liquidity, which is otherwise limited in regular market trading. This is why the buyback was not contingent upon the approval of the delisting.
