No benefit for DGL listing on NZX

Chemical company DGL Group, led by controversial businessman Simon Henry, is delisting from the New Zealand stock exchange because its board believes there is no benefit from remaining listed in New Zealand.

A company announcement to the New Zealand stock exchange (NZX) yesterday afternoon said DGL would move to a sole listing on the Australian Securities Exchange from July 1.

Shares in DGL recently lost a third of their value after Henry, the company’s chief executive, founder, majority shareholder and a director, made disparaging remarks about My Food Bag brand ambassador Nadia Lim. In an interview with the NBR Henry described the celebrity chef as ‘‘a little bit of Eurasian fluff’’ and accused her of ‘‘showing some cleavage’’ and ‘‘showing off her sensuality’’ to sell My Food Bag shares.

Following Henry’s comments DGL was blacklisted by managed funds and DGL’s board launched a culture review into the company.

Henry made a two line apology to Lim sent via an email by a DGL office manager a week after the comments were first published.

DGL shares, which listed on the NZX a year ago at just over $1, were trading at $3.12 yesterday afternoon, down from the $4.50 they reached last month before Henry’s comments were made public. The trading of DGL shares on NZX would cease at the close of business on June 28, yesterday’s announcement said.

DGL shares quoted on NZX would be transferred to a quotation on ASX, and there would be no NZX trading the following two days, it said.

On June 30 DGL would be delisted from the NZX. The sole listing on the ASX would commence at the opening of trading on July 1. DGL’s board outlined three reasons why it was delisting from the NZX.

DGL anticipated, at the time of listing on the NZX, that shareholder participation in New Zealand would be higher than what had transpired. The board believed that offering a New Zealand based trading platform was of little or no value to DGL or its shareholders. There was no benefit from remaining listed on the NZX. Delisting would streamline its administration and services offered to shareholders and reduce costs, it said.

As at May 23 there were 689 New Zealand registered shareholders, which represented 13% of total shareholder numbers, it said. They owned just 2.38% of DGL’s total shares.