PJSC Magnitogorsk Iron & Steel Works ("MMK", or "the Group") (MOEX: MAGN; LSE: MMK) notifies about actions under newly introduced regulations for depositary receipts programmes of Russian issuers.
On 16 April 2022, the President of the Russian Federation signed the Federal Law No. 114-FZ “On changes to Federal Law ‘On Joint-Stock Companies’ and certain legislative acts of the Russian Federation” ("The Federal Law No. 114-FZ"), which obliges Russian issuers to stop issuing and/or trading of depositary receipts and underlying ordinary shares of Russian issuers. Provisions of the Federal Law regarding the depositary receipts will come into force on 27 April 2022 (the "Effective Date").
The Federal Law No. 114-FZ stipulates, among other things:
• for the purpose of receiving an appropriate number of shares of a Russian issuer upon cancellation of depositary receipts, the holders of such depositary receipts shall be determined as of the Effective Date; and
• that the shares of Russian issuers registered in the depo accounts of depository programmes do not provide voting rights, are not considered in the vote count, and dividends on such shares will not be paid.
Within 5 business days from the Effective Date, the issuer shall take necessary and reasonable steps to terminate Depositary Agreement.
Investors' interests are MMK's top priority, and over the years MMK has established itself as an issuer that strictly fulfills all of its obligations to investors. At the same time, MMK is a Russian legal entity obliged to comply with the legislation of the Russian Federation.
As a result of the foregoing and as provided by the Federal Law 114-FZ, MMK intends to submit an application to continue its depositary receipts trading (ISIN US5591892048, US5591891057; CUSIP 559189204, 559189105) outside of the Russian Federation in compliance with the procedure established by the Russian Government. However, MMK cannot guarantee that such application will be satisfied.
Considering the foregoing, MMK encourages holders of its depositary receipts to directly contact Citibank N.A. ("the Depositary") in accordance with the procedure stipulated by the agreement with the Depositary and to discuss with Citibank N.A. the possible options for exercising their rights, including the conversion of depositary receipts into MMK ordinary shares.
Please follow the link to find Citibank N.A. contacts: https://mmk.ru/en/investor/information-for-shareholders/registar-and-depositary/