Japanese technology behemoth Fujitsu is to cease trading its shares on the London Stock Exchange in a bid to cut costs.
The firm applied for the delisting of its shares yesterday morning, adding that it will continue to list on Japanese markets in Tokyo and Nagoya.
“Fujitsu has decided to apply for the delisting to reduce the administrative work and costs associated with being a listed company on the LSE,” the company said in a statement.
“This delisting is not expected to have a material impact on shareholders and investors due to the low trading volumes of the Shares and EDR (European Depositary Receipts) taking place on the LSE.”
Fujitsu anticipates that the delisting will be finished by the end of January 2014.
Fujitsu listed on LSE in 1981 when the world was a very different place, according to TechMarketView research director Peter Roe.
“Around that time there was a spate of listings by Japanese companies on the LSE and NYSE, as they were rapidly internationalising their operations,” he said. “Japanese investment banks were keen to list the large industrial companies on international exchanges so that they could access more capital, give them a local stockmarket presence (in markets that were still very geographically siloed) and also to help the banks themselves in those geographies.
“People can now invest in the Japanese market very easily and Fujitsu can access the world's capital markets from Shimbashi. There is no need from a financing point of view to have a listing on the LSE and it is unlikely to make any difference at all to customers nowadays. The world has moved on."
The move follows a tough year for Fujitsu, which has seen losses in sales and and declining results.
In the UK, it ruled itself out of potentially lucrative Broadband Delivery UK contracts with local authorities after it accused the process of being biased in BT's favour.
The firm also announced yesterday that it would be liquidating its US subsidiary Fujitsu Management Services of America, which used to be behind PBX phone systems, computer peripherals and hard disks before focusing solely on scanners as its only hardware product.
Fujitsu said it will transfer the scanner sales business to PFU Limited, a consolidated subsidiary based in Japan, in order to create a more agile management structure for the scanner business.
The liquidation is expected to complete by March 2015.