Why News Corp Is Pausing Register Conversions Ahead of Dividend Date

Context Behind the Deferral

News Corporation, a global media giant listed on both the Australian Securities Exchange (ASX) and US markets, has announced a brief pause in the processing of conversions between its Australian and US securities registers. This move comes just ahead of the company’s semi-annual dividend record date, set for 11 March 2026, with dividends payable on 8 April 2026.

The deferral period covers 10 and 11 March 2026, during which conversions between US Common Stock and CHESS Depository Interests (CDIs) will not be processed. This step is designed to address the complexities arising from the differing settlement and transfer procedures in the two markets, which could otherwise lead to discrepancies in shareholders’ dividend entitlements.

Ensuring Fairness Across Markets

Because the timing of cum and ex dividend periods varies between the US and Australian securities markets, there is a risk that shareholders converting their holdings between registers close to the record date might find themselves unfairly positioned, either entitled or not entitled to dividends depending on the register they hold. To prevent such inequalities, News Corp sought and received a waiver from the ASX Settlement Operating Rules, allowing this temporary suspension of conversions.

This regulatory flexibility underscores the challenges multinational companies face when operating dual-listed securities across different jurisdictions. By proactively managing the conversion process, News Corp aims to maintain parity among its investors regardless of geography.

Implications for Investors and the Market

For investors, this deferral means that any attempts to convert shares between the Australian and US registers during the specified period will be delayed until after the record date. While this may temporarily limit flexibility, it ultimately protects shareholders’ rights to dividends and ensures a level playing field.

Market participants should watch for further updates on when conversions will resume and monitor any potential impacts on trading volumes or liquidity around this period. The announcement was authorised by Michael L. Bunder, News Corp’s Senior Vice President and Deputy General Counsel, signalling the company’s commitment to regulatory compliance and shareholder fairness.