BusinessCompany NewsRank considers delisting from US over Sarbox

Rank considers delisting from US over Sarbox

Rank Group, one of the UK's leading gaming and entertainment companies, has said it would consider delisting from the US because of the 'onerous demands' the Sarbanes-Oxley Act has placed on the company.

Link: Up to 20 UK companies set to delist from US markets

Rank’s comments supports the warning made by Digby Jones, CBI director general, last week that up to 20 UK companies were considering delisting from New York.

Peter Reynolds, head of investor relations at Rank, said: ‘If it (delisting) starts to happen and there is a real commercial benefit, then clearly that is an option we would look at,’ reported the Financial Times

Rank said it was on track to meet the SEC deadline to comply with Sarbanes-Oxley for reporting years starting on or after July 15.

But Reynolds questioned the fairness of the additional compliance costs when they were for the small portion of investors who held its shares through American Depositary Receipts listed in the US.

‘You have a situation where the majority of the shareholders subsidise the minority,’ he said. Reynolds estimated that about 5% or less of Rank’s equity was held through.

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