NLMK Group plans to submit an application to the Government Commission for Control over Foreign Investments in the Russian Federation to continue circulation of depository receipts on the London Stock Exchange. This was reported in the press service of the enterprise.
On April 16, 2022, Federal Law No. 114-FZ “On Amendments to the Federal Law “On Joint Stock Companies” and Certain Legislative Acts of the Russian Federation” was published.
The law obliges Russian issuers whose shares are traded in the form of depository receipts on foreign exchanges to take actions aimed at terminating depositary agreements within 5 working days from the date of entry into force of the relevant provisions of the law.
The holders of depository receipts of Russian issuers, established as of the date of entry into force of the relevant provisions of the law, will have the right to convert the receipts into ordinary shares. Ordinary shares held in custody accounts of depositary programs will not provide voting rights, and no dividends will be paid on them.
Russian issuers whose shares are traded in the form of depository receipts on foreign exchanges have the right to send an application justifying the need to continue trading securities outside the Russian Federation, which NLMK Group took advantage of.
