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Janus Henderson Group PLC (ASX: JHG) recently announced its plans to delist from the Australian share market, which is raising questions about the future of this ASX 300 share. Despite a morning trade boost that saw the ASX 300 fund manager's shares rise by 4.5% to $38.02, they have since pulled back slightly, currently trading at $36.91.
During the third quarter, Janus Henderson reported a 4% decrease in assets under management (AUM) to US$308.3 billion. However, its financial performance exceeded expectations, with diluted earnings per share of US$0.56 or US$0.64 on an adjusted basis. This performance allowed the company to declare a quarterly dividend of US$0.39 per share and approve a new share buyback program of up to US$150 million.
The decision to delist from the Australian market comes as the company noted a significant decline in CHESS Depositary Interests (CDI) ownership on the ASX, with CDIs representing only approximately 5.5% of the company's total issued share capital as of September 2023. The board of directors believes that the costs and obligations associated with maintaining the ASX listing no longer justify its benefits, and therefore, it is no longer in the best interests of the company or its securityholders.
Shareholders have been provided with two options before the planned suspension date of 4 December. They can either sell their CDIs on the ASX or convert them into shares listed on the New York Stock Exchange (NYSE).
This decision by Janus Henderson Group PLC reflects the evolving dynamics of the company's investor base and its strategic focus on streamlining its listing and trading activities.
