Investment AFK Sistema intends to terminate depository agreements with the London Stock Exchange. The Company also instructed the custodian bank to terminate the Global Depositary Receipts (GDR) program. AFK Sistema plans to complete the delisting on May 14, reports press office corporations.
The company recalled that in accordance with the amendments to the law “On Joint Stock Companies” and Art. 5 of the Federal Law “On Auditing Activities”, Russian companies are required to cease circulation of shares outside the Russian Federation, except in cases where issuers have received permission to circulate depositary receipts outside of Russia.
On April 27, 2022, Sistema received permission from the government commission for control over foreign investment in the Russian Federation to continue circulation of the corporation’s shares abroad in the form of GDRs until May 13, 2023, the press service reported. Upon the expiration of the permitted period, the company is obliged to cease circulation of shares outside of Russia.
After delisting on the London Stock Exchange, trading in AFK Sistema shares will continue on the Moscow and St. Petersburg stock exchanges, the company added.
In April 2022, Russian President Vladimir Putin signed a law on the delisting of depository receipts of Russian companies from foreign exchanges with subsequent conversion into Russian securities. Amendments to the law were prepared by the Ministry of Economy once morest the backdrop of a fall in the value of depositary receipts of the largest Russian issuers on the London Stock Exchange.
