News Corp. Wins Court Approval for Reincorporation Plan

Sep 15, 2004  •  Post A Comment

News Corp. moved a step closer to becoming a United States-based company Wednesday when the Australian Federal Court approved the media giant’s plan to take its reincorporation plans to its Australian shareholders.

With the court approval in hand, the company filed an information memorandum and an independent expert’s report to the Australian Stock Exchange and will mail both documents to shareholders within the next two weeks.

The company plans to hold a meeting on the proposal immediately after its annual shareholders meeting Oct. 26 in Adelaide, Australia. If approved, News Corp. will move its primary stock listing to the New York Stock Exchange from the ASX. The company will have secondary listings on the ASX and the London Stock Exchange.

By relocating to the United States, News Corp. officials said, the company will have easier access to the U.S. capital markets and will provide investment opportunities for a greater number of U.S.-based investors. In addition, the company will increase its chances of inclusion in the Standard & Poor’s 500 index.