Signet to Transfer Primary Listing to NYSE

Signet Group plc is recommending the transfer of the primary of its shares from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE), maintain a secondary listing of the shares on the LSE.

The company's board of directors also recommended transferring the domicile of the group’s parent company to Bermuda.

The UK-based firm, the world’s largest specialty retail jeweler, explained that the move “follows a period of extensive consultation with major shareholders and unanimous approval” by its board of directors. The name of the new parent company will be Signet Jewelers Limited.

In a statement, Signet said, “This is the natural next step in the evolution of Signet’s shareholder base which has seen a steady growth in U.S. ownership since 2003…with almost 50 percent of Signet’s voting securities now being beneficially owned by U.S. residents.”

In addition, the action “will align the place of listing (the NYSE) with the majority of the group’s business activities.” Upwards of 70 percent of Signet’s sales, operating profit and net assets are currently in the U.S., and the U.S., as opposed to the UK, is considered to contain a potentially larger pool of investors, who are more familiar with Signet’s business model and the U.S. economic environment.

The firm is transferring “the domicile of the group’s parent company” to Bermuda in order to be eligible for inclusion in U.S. domestic stock indexes, which it could not do if the business’ headquarters were to remain in England and Wales. The move will also allow the company to have legal, regulatory, capital and financial positions “largely consistent” with those of the company today.

Signet notes that it remains fully committed to its business in the UK specialty jewelry market.