Lafarge has announced its intention to apply for the voluntary delisting of its American Depositary Receipts (ADRs) from the New York Stock Exchange (NYSE). This delisting will be followed by an application to deregister under the Securities and Exchange Act of 1934. The delisting is expected to take effect in September 2007.
The main reasons behind this decision are as follows:
* Lafarge notes recent changes, in particular the merger of the New York Stock Exchange and Euronext.
* Lafarge is listed on Euronext, where the average trading volume has accounted for close to 99% of trading in its securities.
* Lafarge ADR trading volume has remained very low since 2002, accounting for around 1% of the total shares traded over recent years (volumes adjusted to reflect the 1 share to 4 ADRs ratio).
* Lafarge was one of the very first European groups to be compliant with section 404 of the Sarbanes-Oxley act, attesting to the transparency and quality of the Group’s internal processes. Lafarge remains committed to maintaining high standards of internal controls and financial information.
Lafarge intends to maintain its ADR program as a “level one” program, to enable investors to retain their ADRs.