By Andrew Starke

Constellation Brands, owner of Constellation Wines Australia, will delist from the Australian Stock Exchange (ASX) later this year citing ‘very low levels of trading’ for the decision.

In a statement to the ASX, the global wine giant said it had sought removal from the official list of ASX Limited (ASX) and suspension of trading in its CHESS Depositary Interests (CDIs), from market close on November 17 2010.

Constellation was admitted to the official list of the ASX on April 7, 2003 and the company currently trades on the ASX by way of CDIs.

“Constellation has a low level of CDIs quoted on the ASX, with very low levels of trading when compared to its equity on the New York Stock Exchange (NYSE),” said the company’s statement.

“As a result of this, coupled with the additional complexity of administration and compliance associated with the listing of the CDIs on the ASX, Constellation has made the business decision to delist from the ASX.”

The delisting process is not expected to impact on Constellation’s Australian business operations.

Constellation Brands recently offered voluntary redundancy packages to a number of staff as it scaled back some of its local wine operations to focus on ‘Icon Brands’.


The Shout Team

The leading online news service for Australia's beer, wine, spirits and hospitality industries.

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