Jewelry retailer sees majority of future growth in U.S.

London’s Signet Group PLC is recommending to shareholders that it move its listing from the London Stock Exchange (LSE) to the New York Stock Exchange (NYSE).

The company's board of directors has unanimously approved the changes, which came about after a period of extensive consultation with major shareholders, according to a media release issued from the company.

In the release, Signet called the move “the natural next step in the evolution of Signet's shareholder base,” which has experienced a steady growth in the number of U.S. shareholders, especially in the last 12 months.

According to Signet, U.S. residents own almost 50 percent of Signet's voting securities. In addition, more than 70 percent of the group's sales, operating profit and net assets are in the United States.

“Having our primary stock listing on the New York Stock Exchange is the natural next step in the evolution of Signet,” Signet Group PLC Chairman Sir Malcolm Williamson said in the release. “The proposal will align the place of primary listing with the group's business activities, which are predominately based in the United States and where the board expects the majority of its future growth to take place.”

Though it is looking to slide over to the NYSE, Signet emphasizes that it “remains fully committed to enhancing its strong presence in the UK specialty jewelry market,” and will apply for a secondary listing on the LSE.

To be eligible for inclusion on the NYSE, Signet cannot keep its parent company's headquarters in the United Kingdom and is proposing a move to Bermuda, a well-established jurisdiction for companies traded on the NYSE and included in U.S. domestic stock indexes, such as Standard and Poor's.

Signet operated 1,966 retail jewelry stores as of May 3, including 1,407 Kay Jewelers, Jared The Galleria Of Jewelry and other regional stores in the United States.

Source: National Jeweler