November 25, 2024

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Samsung Electronics office in southern Seoul (Newsis)

Samsung Electronics’ depositary receipts listed in Luxembourg Stock Exchange are to transfer to the London Stock Exchange, according to the company’s filing on Friday.

A depositary receipt is a financial security that allows investors to own shares in a foreign company without trading on a foreign market.

The decision came upon the tech giant’s board of directors' decision to delist the DRs from Luxembourg, the filing showed.

Based on Samsung Electronics' preferred shares, the shares to be delisted amount to some 38.6 million DRs. The company plans to apply for delisting on Nov. 6.

The DRs currently listed in Luxembourg will be transferred to the London Stock Exchange on March 31 next year.

“We initially listed DRs on the Luxembourg Stock Exchange in 1991 to facilitate trading for overseas investors, but due to low trading volume, we have decided to proceed with delisting,” a Samsung Electronics official said.

By Jie Ye-eun (yeeun@heraldcorp.com)