Nuplex considers shift of primary listing to Australia

Nuplex Industries Ltd is considering shifting its primary sharemarket listing to Australia in a move which disappoints the New Zealand Shareholders Association but may benefit New Zealand shareholders.

The chemicals company has been operating its head office in Australia for some time but said in its 2010 annual report it is considering moving the company's domicile to Australia, with listings remaining on both the New Zealand and Australian exchanges.

Such a move would be in the best interests of all shareholders, chairman Rob Aitken said.

"This would likely result in the payment of partially imputed dividends for New Zealand shareholders, greater liquidity in the larger Australian market and, we believe, a possible re-rating of Nuplex shares over time.

"Greater access to the Australian capital market would also facilitate the group's growth plans," he said.

New Zealand Shareholders' Association chairman John Hawkins said the reality was that the company did not make enough in New Zealand to pay imputation credits to New Zealand shareholders.

"It is disappointing to see a primary listing moving but the reality for shareholders in this case is there are probably advantages and it doesn't change anything as far as the operation of the company is concerned.

"It may improve the situation for gaining imputation credits," he said.

The company will say more about the timing of its move at the annual meeting.

Its chief executive, chief financial officer and other senior executives are already based in Sydney.

The company declared a final dividend of 11 cents to be paid on October 8. The final dividend will be franked to 40 percent for Australian shareholders, but does not carry New Zealand imputation credits.