9 Jun 2023 18:35

Qiwi to keep Nasdaq listing if business split, Russian assets transferred to local co

MOSCOW. June 9 (Interfax) - Qiwi plc will retain its listing on Nasdaq subject to a number of conditions, including the division of its business into international and Russian segments.

The Russian payments service provider said its international business would go to Qiwi, which trades on Nasdaq and the Moscow Exchange . The Russian business will be consolidated by the local JSC Qiwi.

Qiwi presented a business restructuring plan at a meeting of the Nasdaq commission. The exchange granted Qiwi's appeal and reversed its delisting decision, subject to the company meeting a number of conditions, the group said.

The Russian and international business segments should be established in June 2023. The business should be fully unbundled by the end of August this year, subject to the receipt of all regulatory approvals.

JSC Qiwi and Qiwi plc will continue to develop on a standalone basis if the Central Bank of Russia approves the restructuring, the group said.

Splitting up Qiwi's Russian and international business is a logical and balanced step given the current economy and geopolitical situation, the group's executive director, Andrei Protopopov said in the press release.

JSC Qiwi's development in Russia will not depend on the requirements of foreign jurisdictions, while the international Qiwi will have more freedom and momentum for development, including organic growth and acquisitions of other businesses, setting the stage for a fair valuation of the company on international markets, he said.

The group said the restructure will not affect the availability of its services and products for customers and partners.

If the time and results of the restructuring meet Nasdaq's requirements and Qiwi plc meets listing criteria after the split, trading of Qiwi plc securities will resume on the exchange. The company must demonstrate to Nasdaq by September 11, 2023 that it is in compliance with all continued listing requirements.

Trading of Qiwi shares on Nasdaq was suspended on February 28, 2022 due to the geopolitical situation. Trading of the company's shares on the Moscow Exchange has continued as usual.

Nasdaq notified Qiwi on March 15 that its shares would be delisted as of March 24, 2023. The group reported a week later that it had requested a hearing to appeal this decision.

Qiwi's free float is 71.5% of shares. The company's largest shareholder is Sergei Solonin with 28.2% of shares and 71.2% of votes.