Why News Corp Is Pausing Register Conversions Ahead of Dividend Date

Background on the Dividend and Registers

News Corporation, a major player in the media and publishing sector, has announced a temporary pause in the processing of conversions between its Australian and US securities registers. This move comes ahead of the company's semi-annual dividend payment scheduled for October 8, 2025, with the critical record date set for September 10, 2025. Both US Common Stock holders and holders of CHESS Depository Interests in Australia are affected.

Why the Deferral?

The deferral arises from the complexities involved in the differing settlement and transfer procedures between the US and Australian markets. Specifically, the timing of cum (with dividend) and ex (without dividend) periods can create discrepancies in shareholder entitlements if conversions between registers occur too close to the record date. To avoid any unfair advantage or disadvantage to security holders, News Corp sought and received a waiver from the ASX Settlement Operating Rules to temporarily halt these conversions during the two-day window of September 9 and 10.

Implications for Investors and the Market

This operational pause ensures that all shareholders are treated equally with respect to dividend entitlements, maintaining market integrity and investor confidence. While the announcement does not quantify the impact on trading volumes or settlement timing, it signals News Corp's commitment to transparent and fair shareholder practices. Investors holding securities on either register should be aware of this temporary freeze and plan their transactions accordingly.

Looking Ahead

Following the deferral period, conversions between the registers are expected to resume as normal. Market participants will be watching closely for any further updates from News Corp regarding the processing of these conversions and any potential ripple effects on liquidity or pricing around the dividend payment date.