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French telecommunications giant Orange SA announced Wednesday that it plans to delist from the New York Stock Exchange (NYSE), citing the "significant financial and administrative requirements" tied to maintaining its listing. The decision reflects the company’s broader aim to streamline operations while keeping a focus on high corporate governance standards.

Orange Telecoms To Exit NYSE : Exit Plan and Timeline

Orange revealed that it intends to file the necessary paperwork to initiate its exit from the NYSE and deregister with the U.S. Securities and Exchange Commission (SEC) during the fourth quarter of 2024. Once filed, the exit will take effect 10 days later. The company clarified that it does not need shareholder approval to proceed. While Orange is pulling out of the NYSE, its shares will continue to be listed on the Euronext Paris exchange, which houses the majority of its investors.

Jones Day Leads Legal Guidance

A legal team from the Paris office of Jones Day is advising Orange on this significant transition. The team is spearheaded by partner Linda Hesse, with support from counsel Seth Engel and associate Bonnie Smith.

Orange Telecoms To Exit NYSE : Focus on Internal Efficiency

Orange’s board stated that its choice to exit the NYSE was driven by a thorough assessment of the financial and administrative demands associated with the U.S. listing. The company aims to improve "internal simplification and efficiency," while ensuring that its governance and financial transparency remain uncompromised. "This decision aligns with the group's goals to simplify its structure and increase operational efficiency without impacting clients, partners, or its commercial presence in the U.S.," Orange said in its statement.

Deregistering Debt Securities

In addition to delisting its stock, Orange also plans to deregister debt securities previously issued on the NYSE. The process requires careful analysis, particularly regarding how to terminate or suspend related reporting obligations, such as those tied to debt financing.

Orange's Global Presence

Orange remains a dominant player in the global telecommunications sector, generating €39.7 billion ($44.4 billion) in revenue for 2023. The company employed 128,000 workers worldwide as of June 2024, with 72,000 based in France. The NYSE has yet to respond to requests for comment on Orange’s planned withdrawal.