18 May 2022 16:22

Severstal gets permission to maintain listing on London Stock Exchange

MOSCOW. May 18 (Interfax) - The Russian government's Commission on Monitoring Foreign Investment has allowed Severstal to continue its program of issuing global depositary receipts (GDRs) abroad for an indefinite period, the company said in a statement.

"The rights of GDR holders, including the right to vote, to receive dividends and to convert their GDRs into common shares of the company, will continue to be determined in accordance with applicable law and relevant depositary agreements," Severstal said.

Severstal's GDRs are listed on the London Stock Exchange. Their trading is currently suspended by the London Stock Exchange.

Severstal in April asked GDR depositary Citibank NA to consider steps necessary in connection with the termination of the GDR program in anticipation of a new Russian law on the matter coming into effect.

Severstal's appeal to the oversight commission was required owing to amendments to legislation that came into force on April 27, 2022. According to Russian federal law No. 114-FZ, Russian issuers had until May 5, inclusive, to complete the "necessary and sufficient" actions to terminate agreements on the placement of depositary receipts outside the Russian Federation. Companies wishing to maintain their respective depositary programs had the right to appeal to the Finance Ministry by May 5 with a corresponding request, providing a rationale for such a decision.