SLB announces voluntary delisting from Euronext Paris

Rhea-AI Summary

SLB (NYSE: SLB) has announced its decision to voluntarily delist from Euronext Paris, citing low trading volumes and increasing costs associated with maintaining a dual listing. The company will maintain its primary listing on the New York Stock Exchange (NYSE) under the symbol 'SLB'. Shareholders of SLB Euronext Shares have two options: keep their shares for trading on NYSE after delisting, or participate in a voluntary sales facility to sell their shares.

The voluntary sales facility will run from July 29 to August 12, 2024. Shares will be sold on NYSE starting August 15, 2024. The last trading day on Euronext Paris will be August 16, 2024, with official delisting on August 19, 2024. SLB will cover centralization and brokerage fees for the sales facility. Shareholders are advised to consult their investment advisors before deciding to participate in this process.

Positive

• Reduction in administrative costs and managerial time by delisting from Euronext Paris
• Company covering fees for centralization and brokerage related to the voluntary sales facility

Negative

• Potential decrease in liquidity for European investors after delisting from Euronext Paris
• Possible short-term share price volatility due to the delisting process

Financial Analyst

SLB's decision to voluntarily delist from Euronext Paris is a strategic move that reflects the company's focus on streamlining its operations and reducing unnecessary costs. This decision is unlikely to have a significant impact on the company's overall financial performance or investor sentiment for several reasons:

• The primary listing on the New York Stock Exchange (NYSE) will be maintained, ensuring continued access to capital markets and liquidity for investors.
• The low trading volumes on Euronext Paris suggest that the delisting will have minimal impact on overall trading activity.
• The move is expected to result in cost savings related to administrative requirements and managerial time associated with maintaining a dual listing.

From an investor's perspective, this decision may actually be viewed positively as it demonstrates the company's commitment to operational efficiency. However, it's important to note that European investors may face some challenges in trading SLB shares after the delisting, as they will need to trade through U.S. facilities.

The voluntary sales facility offered by SLB is a thoughtful approach to assist European shareholders in the transition. This facility, which runs from July 29 to August 12, 2024, provides a convenient option for shareholders to sell their shares on the NYSE without incurring additional fees. However, investors should be aware of the potential risks associated with market price fluctuations and currency exchange rates during this process.

In the long term, this move aligns with the global trend of companies simplifying their listing structures to reduce complexity and costs. It's a strategic decision that should not materially affect SLB's financial health or market position, but rather contribute to a more streamlined corporate structure.

Market Research Analyst

The voluntary delisting of SLB from Euronext Paris is part of a broader trend we're seeing in the global markets. Companies are increasingly reevaluating their multiple listing strategies, particularly when secondary listings show low trading volumes. This move by SLB is indicative of a shift towards consolidation and efficiency in capital markets.

From a market perspective, the impact of this delisting is likely to be minimal. The NYSE, as SLB's primary exchange since 1962, accounts for the vast majority of the company's trading volume. The low trading volumes on Euronext Paris suggest that the European listing was not significantly contributing to the company's liquidity or price discovery.

However, this decision does raise some interesting points about market access and investor behavior:

• European retail investors may find it slightly more challenging to trade SLB shares, potentially leading to a small reduction in the company's European retail investor base.
• Institutional investors, who typically have easy access to multiple markets, are unlikely to be significantly affected.
• This move might prompt other dual-listed companies to reassess their listing strategies, potentially leading to a wave of similar delistings in the future.

The voluntary sales facility offered by SLB is a commendable effort to ease the transition for European shareholders. By covering the associated fees, SLB is demonstrating good faith and shareholder consideration. However, investors should be aware that the sales facility runs for only two weeks (July 29 to August 12, 2024), which may create some time pressure for decision-making.

In conclusion, while this delisting is unlikely to cause significant market disruption, it's a noteworthy development in the ongoing evolution of global market structures and corporate strategies for managing international presence.

PARIS--(BUSINESS WIRE)-- Regulatory News:

SLB (NYSE: SLB) today announced that it will proceed with a voluntary delisting of its shares (ISIN: AN8068571086) from Euronext Paris.

Consistent with its prior decisions to delist from other exchanges, SLB reviewed the low trading volumes on the Euronext Paris and, given the increasing costs, administrative requirements and managerial time required to maintain a dual listing, has requested a voluntary delisting from the Euronext Paris.

SLB became a public company in 1962 with its orignal listing on the New York Stock Exchange (NYSE), which has been its primary exchange. SLB will maintain its single listing on NYSE under the symbol “SLB”.

The delisting has been approved by the Board of Directors of Euronext Paris and the company’s shares will remain listed on the NYSE under the symbol “SLB”.

The holders of SLB shares traded on Euronext and held through the facilities of Euroclear France (the “SLB Euronext Shares”) will have the following options:

• keep their SLB Euronext Shares, which they will be able to trade on Euronext Paris until the day before the delisting date and on the NYSE thereafter through the facilities of The Depositary Trust Company (“DTC”), subject to the terms applied by their financial intermediary and their custody arrangements; or
• participate in a voluntary sales facility (described below) to sell all or part of their SLB Euronext Shares, in accordance with the rules and regulations of Euronext Paris.

For the avoidance of doubt, holders of SLB Euronext Shares will be able to trade on Euronext Paris until August 16, 2024 (the last trading date prior to the delisting).

Procedure of the Voluntary Sales Facility

Shareholders who wish to sell their SLB Euronext Shares utilizing the voluntary sales facility should request that their financial intermediaries deliver their SLB Euronext Shares to Uptevia, acting as centralizing agent, at any time from July 29, 2024, to August 12, 2024 (inclusive).

SLB Euronext Shares delivered to Uptevia will be sold on the NYSE as from August 15, 2024, at the market price prevailing at the time of sale.

Uptevia will calculate the average sales price of SLB Euronext Shares sold during the sales period and transfer the sale proceeds (which will be converted into euros from U.S. dollars by Uptevia) to the participating shareholders once it receives the funds.

The company will pay the fees for the centralization and the brokerage fee related to the sale of SLB Euronext Shares delivered to Uptevia as part of the voluntary sales facility.

This voluntary sales facility procedure is also described in a Euronext notice to be published on July 25, 2024.

Please note that no guarantee can be given by the company or by Uptevia as to the price at which the SLB Euronext Shares tendered pursuant to the voluntary sales facility will actually be sold. This process is being provided solely as an accommodation to holders of SLB Euronext Shares.

Shareholders may decide not to participate in the voluntary sales facility or may decide not to take any action, in which case no guarantee can be given to them on the terms that will be applied by their financial intermediary after the delisting. Shareholders are urged to consult their own investment advisors before making a decision to participate or not in this process.

The calendar of the voluntary sales facility and the delisting of the company described above is summarized as follows (it being specified that the company reserves the right to amend this calendar):

Event	Date
Voluntary Sales Facility
Beginning of the voluntary sales facility	July 29, 2024
End of the voluntary sales facility	August 12, 2024
End of the centralization by Uptevia	August 14, 2024 (before 4:00 PM Paris time)
Sale on the NYSE of the shares tendered in the voluntary sales facility	Beginning August 15, 2024
Settlement of the proceeds of the sale to the relevant financial institutions	As soon as possible after receipt of the proceeds of the sale
Delisting
Last day of trading of the company’s shares on Euronext Paris	August 16, 2024
Delisting of SLB Euronext Shares on Euronext Paris	August 19, 2024

Shareholders participating in the voluntary sales facility are reminded that they acknowledge and accept the risks related to the change in the share market price and/or applicable foreign exchange rates between the date on which their shares are delivered to Uptevia for participation in the voluntary sales facility and the receipt of the applicable average sale proceeds. All tenders of SLB Euronext Shares under the voluntary sales facility will be irrevocable.

Shareholders who would like additional information about the voluntary sales facility or the delisting procedure may contact their custodian and usual financial intermediary, who has received the details of the delisting or the company by email at investor-relations@slb.com.

About SLB

SLB (NYSE: SLB) is a global technology company that drives energy innovation for a balanced planet. With a global footprint in more than 100 countries and employees representing almost twice as many nationalities, we work each day on innovating oil and gas, delivering digital at scale, decarbonizing industries, and developing and scaling new energy systems that accelerate the energy transition. Find out more at slb.com.

View source version on businesswire.com: https://www.businesswire.com/news/home/20240724224924/en/

Media

Moira Duff – Director of External Communications

SLB

Tel: +1 (713) 375-3407

media@slb.com

Investors

James R. McDonald – SVP of Investor Relations & Industry Affairs

Joy V. Domingo – Director of Investor Relations

SLB

Tel: +1 (713) 375-3535

investor-relations@slb.com

Source: SLB

FAQ

When will SLB (NYSE: SLB) delist from Euronext Paris?

SLB will officially delist from Euronext Paris on August 19, 2024. The last trading day for SLB shares on Euronext Paris will be August 16, 2024.

What options do SLB (NYSE: SLB) shareholders on Euronext Paris have regarding the delisting?

Shareholders have two options: 1) Keep their shares, which can be traded on Euronext Paris until August 16, 2024, and on NYSE thereafter, or 2) Participate in a voluntary sales facility to sell all or part of their shares between July 29 and August 12, 2024.

How will the voluntary sales facility for SLB (NYSE: SLB) shares work?

Shareholders can request their financial intermediaries to deliver their shares to Uptevia from July 29 to August 12, 2024. Shares will be sold on NYSE starting August 15, 2024, at prevailing market prices. Uptevia will calculate the average sales price and transfer proceeds to participating shareholders.

Why is SLB (NYSE: SLB) delisting from Euronext Paris?

SLB is delisting from Euronext Paris due to low trading volumes and increasing costs, administrative requirements, and managerial time required to maintain a dual listing. The company will maintain its primary listing on the New York Stock Exchange (NYSE).