IF SSN delists from ASX here what I think would happen.
1. The ADS SSNYY simply gets exchanged 1 for 1 for a new share call it XSSN
2. Remaining ASX shares get exchanged for XSSN shares at 1 for 200 (existing ratio)
Now your question is how can you sell those XSSN shares? Not as easy as you may think. For those that have a brokerage account with say Interactive Brokers it may be a little easier. If your SSN shares are held in a SMSF account ... downright hard.
First thing that happens is SSN appoints a Transfer Agent in the USA to act as share registry manager ... very similiar to what the SSN Australia share registry manager (Security Transfer Australia - STA) does.
So lets pick a real share registry manager such as American Stock Transfer and Trust C0 (AST). When the time comes STA will provide all details to AST. Any broker references are "severed". You can reestablish this by providing AST with details should you wish to appoint your existing broker to act as your trading agent (if they offer that service). There is no need to do that do. You will be able to trade under what is called the US Direct Registration Scheme (DRS) but AST will need a brokerage account (from a participating DRS) to deposit the proceeds.
Its not easy or cheap. ComSec does offer these services but depends on company.
Its actually a pain in the ass ... recently got a check for US$4.24 being the cash equivalent of a fractional share and if you know the hassle and cost of deposited a foreign check, then you might as well just wish it was printed on tissue paper for what its worth.
Hope it helps. I for one would not be holding were that to occur.
SSN Price at posting:
0.2¢ Sentiment: None Disclosure: Held
