Chinese firm gets DFSA waiver on takeover rule to go private.
"The company received an approval notice from the Dubai Financial Services Authority for its application for a waiver from the provisions of the DFSA takeover rules module," the company said in a filing to Nasdaq Dubai.
CSST applied for the takeover rules waiver from DFSA last month so that it could proceed with its efforts become a private company.
The waiver of takeover rules will remain effective as long as the company's common stock remains suspended from trading on Nasdaq Dubai.
Last month the company notified Nasdaq Dubai in writing of its intention to voluntarily delist its securities from the official list of Nasdaq Dubai. The company's common stock has been suspended from trading on Nasdaq Dubai since May 22 and is expected to be delisted from the bourse on or about July 21.
"The grant of the waiver takeover rule does not imply that the DFSA has approved or disapproved the proposed going private transaction," the company clarified in an e-mailed statement.
CSST joined the Dubai International Financial Exchange (DIFX) in 2008, becoming the first company from China to join the bourse, which was later renamed Nasdaq Dubai.
The company listed its ordinary shares on Nasdaq Dubai in a secondary listing. Its primary listing is on the New York Stock Exchange. After the delisting from Nasdaq Dubai, the stock will continue to be listed on the New York Stock Exchange.
"The board believes that a delisting from Nasdaq Dubai and preceding suspension of listing of the company's common stock on Nasdaq Dubai will not have a material impact on the stockholders, its current relationships with employees, customers or suppliers, or its existing financing arrangements," a statement from CSR said.
Based in Shenzhen, China, CSST is primarily engaged in the manufacture, distribution, installation and servicing of surveillance and safety products.
The grant of the waiver takeover rule does not imply that the DFSA has approved or disapproved the proposed going private transaction."
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