[Federal Register: March 15, 2005 (Volume 70, Number 49)]
[Notices]
[Page 12759-12760]
From the Federal Register Online via GPO Access [wais.access.gpo.gov]
[DOCID:fr15mr05-157]
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SECURITIES AND EXCHANGE COMMISSION
[File No. 1-14544]
Issuer Delisting; Notice of Application of Grupo Imsa, S.A. de
C.V. To Withdraw Its American Depositary Shares (Represented by
American Depositary Receipts (Each Representing Nine Equity Units, Each
of Which Consists of Three Series B Shares, No Par Value, and Two
Series C Shares, No Par Value), From Listing and Registration on the
New York Stock Exchange, Inc.
March 9, 2005.
On February 10, 2005, Grupo Imsa, S.A. de C.V., a company organized
under the laws of United Mexican States (``Issuer''), filed an
application with the Securities and Exchange Commission
(``Commission''), pursuant to Section 12(d) of the Securities Exchange
Act of 1934 (``Act'') \1\ and Rule 12d2-2(d) thereunder,\2\ to withdraw
its American Depositary Shares (each representing nine equity units,
each of which consists of three Series B shares, no par value, and two
Series C shares, no par value) (``Security''), from listing and
registration on the New York Stock Exchange, Inc. (``NYSE'').
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\1\ 15 U.S.C. 78l(d).
\2\ 17 CFR 240.12d2-2(d).
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The Board of Directors (``Board'') of the Issuer adopted
resolutions, at a
[[Page 12760]]
meeting held on January 10, 2005, to withdraw the Security from listing
and registration on the NYSE. The Board stated that in reaching its
decision to withdraw the Security from the Exchange, the Board
considered the following factors. First, the Board believes that the
Issuer's shareholders have been disadvantaged by the historically thin
liquidity of the trading in the US markets for the Security. The Board
believes that the trading price of the Security has been adversely
affected by weak liquidity. Second, in the Board's view, the liquidity
and pricing issues have arisen because the public float of the Security
is not large enough to support trading on two exchanges. Only 15% of
the Security is owned by the public, with the rest owned by the Canales
Clariond and Clariond Reyes families. Since the Issuer is a Mexican
company, headquartered in Monterrey, Mexico, the Board believes that
all trading in the Security should take place on the Mexican Stock
Exchange. Third, the Board hopes that if all of the trading in the
Security takes place on the Mexican Stock Exchange, the market for the
Security on that exchange will show improved liquidity and pricing. In
that case, withdrawal of the Security from listing on the NYSE will
benefit the Issuer's shareholders.
Last, the Board stated that as required by the Issuer's by-laws,
the Issuer's shareholders have voted on and approved by a majority of
more than 98%, the proposal to withdraw the Security from listing on
the NYSE. Investors in the Security will continue to have access to
information regarding the Issuer contained in reports filed with the
Commission. In view of the thin liquidity of the trading markets for
the Security and the price at which the Security has historically been
trading, the Board believes that the Issuer's shareholders have not
realized the benefits of an NYSE listing.
The Issuer stated in its application that it has complied with the
NYSE's rules governing an issuer's voluntary withdrawal of a security
from listing and registration by providing the NYSE with the required
documents governing the removal of securities from listing and
registration on the NYSE.
The Issuer's application relates solely to the withdrawal of the
Security from listing on the NYSE and from registration under Section
12(b) of the Act,\3\ and shall not affect its obligation to be
registered under Section 12(g) of the Act.\4\
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\3\ 15 U.S.C. 78l(b).
\4\ 15 U.S.C. 78l(g).
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Any interested person may, on or before April 4, 2005, comment on
the facts bearing upon whether the application has been made in
accordance with the rules of the NYSE, and what terms, if any, should
be imposed by the Commission for the protection of investors. All
comment letters may be submitted by either of the following methods:
Electronic Comments
Use the Commission's Internet comment form (http://www.sec.gov/rules/delist.shtml.
); or Send an e-mail to rule-comments@sec.gov. Please include
the File Number 1-14544 or;
Paper Comments
Send paper comments in triplicate to Jonathan G. Katz,
Secretary, Securities and Exchange Commission, 450 Fifth Street, NW.,
Washington, DC 20549-0609.
All submissions should refer to File Number 1-14544. This file number
should be included on the subject line if e-mail is used. To help us
process and review your comments more efficiently, please use only one
method. The Commission will post all comments on the Commission's
Internet Web site (http://www.sec.gov/rules/delist.shtml). Comments are
also available for public inspection and copying in the Commission's
Public Reference Room. All comments received will be posted without
change; we do not edit personal identifying information from
submissions. You should submit only information that you wish to make
available publicly.
The Commission, based on the information submitted to it, will
issue an order granting the application after the date mentioned above,
unless the Commission determines to order a hearing on the matter.
For the Commission, by the Division of Market Regulation,
pursuant to delegated authority.\5\
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\5\ 17 CFR 200.30-3(a)(1).
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Jonathan G. Katz,
Secretary.
[FR Doc. E5-1119 Filed 3-14-05; 8:45 am]
BILLING CODE 8010-01-P