Partner Communications Co. Ltd. (TASE:PTNR) CEO Avi Gabbay is delisting the telecom company from Nasdaq although it will continue to trade on the Tel Aviv Stock Exchange. Gabbay led a similar move two years ago when he was then CEO of Israeli telecom rival Cellcom Israel Ltd. (TASE:CEL), delisting it from the NYSE.
Both Israeli telecoms have ended their Wall Street adventures wqith negative returns. Cellcom was delisted after yielding a loss of 50% for investors over the 14 years in which the share was traded on Wall Street. Partner has been traded on Nasdaq since 1999 has lost a more modest 5% (adjusted for dividends that were distributed).
Partner's market cap is currently NIS 4.4 billion, down from its peak of NIS 14.6 billion in 2010 but up from just NIS 1.34 billion at its low point in 2015.
Partner said, "The board of directors of the company has determined after extensive consideration that its current dual listing structure, whereby its ADSs are traded on Nasdaq, in addition to the trading of its ordinary shares on TASE, is unnecessary in today's increasingly globalized trading environment, where investors have access to securities in international markets, regardless of where they are listed. Since the vast majority of its equity securities trade on TASE and its operations are substantially all carried out in Israel, it would be prudent for the company to terminate its listing on Nasdaq."
Partner added, "The company will be able to focus even further on its business development, while reducing the costs and challenges to the company of maintaining a listing in the US, where the company's operations are not focused."
Published by Globes, Israel business news - en.globes.co.il - on February 7, 2023.
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