Question: With the pending delisting of Twenty-First Century Fox (FOX) from the ASX, I would have thought that the share price would come under some selling pressure as it gets closer to the delisted date, yet the stock price is going up.Is there some (unknown) reason for this?
Answer (By Paul Rickard): I think there may be other factors at play that are more important, such as the operating performance of the company. FOX is a global company – most of its shareholders (including the Murdoch family) are domiciled in the US, and as FOX is “dual listed’ on both the NASDAQ and ASX, there is arbitrage opportunity if the price gap opens up too much.
As a US company that reports in US dollars, currency changes are also going to impact the effective Australian dollar share price. Another factor that is possibly impacting the price of B class shares is that FOX is currently undertaking an on-market buyback.