In 2004, The News Corporation Limited (TNCL) decided to move its operations from Australia to the United States of America. As part of this arrangement, TNCL was replaced by News Corporation Inc (NC) as the holding company of the TNCL group of companies.
Under the arrangement, all the shares in TNCL (other than 100 redeemable ordinary shares held by NC) were cancelled and NC shares or Chess Depositary Instruments (CDIs) were issued in their place. Most Australian shareholders received CDIs; they could choose to receive NC shares, but these could only be traded in the US.
Ordinary shareholders received one voting NC CDI (or share) for every two TNCL ordinary shares that they held at the time of the cancellation. Preference shareholders received one non-voting NC CDI (or share) for every two TNCL preference shares that they held at the time of the cancellation.
The reincorporation was completed on 12 November 2004. The weighted volume average price (WVAP) of NC voting CDIs for the period 4 to 11 November 2004 was $23.28; the WVAP of NC non-voting CDIs for the same period was $22.61.