Almost all Russian cos complete automatic conversion of depositary receipts into shares

KAZAN. Sept 23 (Interfax) - The process of the automatic conversion of depositary receipts into shares of Russian issuers that are held at Russian depositories has concluded, with almost all companies having completed it, the director of corporate relations at the Central Bank of Russia (CBR), Yelena Kuritsyna said.

"Sistema PJSFC is the only one that decided not to leave for some reason. We gathered information, all the rest went through it, converted with everyone, even on those programs where there was a 'bad' conversion ratio," Kuritsyna told reporters on the sidelines of a banking forum in Kazan organized by the Association of Banks of Russia.

There were difficulties with the appearance of fractional shares in this conversion process, but they were resolved, she said.

All depositary receipts "that were in the Russian segment" have been converted. Conversion figures differed by company. For some it could have been 21% of charter capital, for example, and there were some for which it was 2-4% of charter capital, but for most it was "less than 1%," Kuritsyna said.

The automatic conversion of depositary receipts for shares in Russian issuers held at Russian depositories began on August 15 under a July 14, 2022 law (No. 319-FZ). Companies that had earlier received permission to maintain their depositary receipt programs had until August 17 to ask the Finance Ministry to defer automatic conversion or for permission to not convert.

Sistema, which was allowed to keep depositary receipts until May 13, 2023, exercised this right. There were no reports on whether the company's application was considered.