March 23, 2018 / 9:18 PM / a year ago

Stada applies to move away from Prime Standard listing on Frankfurt's exchange

FILE PHOTO - The logo of Stada Arzneimittel AG is pictured at their headquarters in Bad Vilbel near Frankfurt, Germany, August 24, 2017. REUTERS/Ralph Orlowski

(Reuters) - German pharmaceutical company Stada STAGn.DE said on Friday it had applied to switch its listing of shares to the General Standard market segment from the Prime Standard segment on the Frankfurt exchange, a step that would reduce its reporting requirements.

“This will avoid substantial effort and assist the company in cost-saving and streamlining processes,” Stada said in a statement.

The withdrawal from the Prime segment, which requires high international transparency requirements, becomes effective three months after an announcement by the Frankfurt Stock Exchange.

The General Standard segment is primarily intended for medium-sized and large corporations that wish to use a cost-effective listing for their listing admissions in the regulated market, according to the Deutsche Borse Cash Market.

Stada, now controlled by private equity firms Bain and Cinven, has seen about five leadership changes in roughly two years, recently naming Peter Goldschmidt to take over as chief executive from Sept. 1.

Late last year, the company was hit by the economic fallout from Catalonia’s secessionist push as its Barcelona-based Spanish subsidiary was boycotted by pharmacies in the rest of the country. It cited political turbulence due to the Catalonia referendum as one of the reasons why its group earnings in the fourth quarter were negatively impacted.

Reporting by Shalini Nagarajan in Bengaluru; Editing by Peter Graff

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