MARKETS: A Telecom NZ reprieve

Holders of Telecom New Zealand American depository receipts will be able to convert them to ordinary shares at no cost after its decision to deregister in the US.

Telecom New Zealand says Bank of New York Mellon will waive cancellation fees for the holders of the phone company’s American depositary receipts until July 5.

ADR holders will be able to receive ordinary shares in Telecom NZ after cancelling their ADRs at no cost.

Telecom NZ plans to deregister from the US Securities and Exchange Commission and end reporting under the US Securities Exchange Act.

“Telecom is undertaking a simplification and cost reduction exercise,” the company said in a statement to the Australian Securities exchange.

“Deregistration is consistent with this objective.”

Telecom delisted from the New York Stock Exchange in July 2012. It suspended the new issuance of ADRs in September last year.