REG - OMV Petrom S.A. - Start of delisting and cancel trading of GDRs

OMV Petrom SAAnnouncement

24/08/2023 07:00

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RNS Number : 3284K  OMV Petrom S.A.  24 August 2023

 

OMV Petrom S.A.

Ad hoc report

 

 

 

In compliance with Law no. 24/2017 on issuers of financial instruments and
market operations (republished) and Financial Supervisory Authority's
Regulation no. 5/2018 on issuers of financial instruments and market
operations

 

Date of report: 24 August 2023

Name of issuer: OMV Petrom S.A.

Headquarters: Bucharest, 22 Coralilor Street, District 1, ("Petrom City")

Telephone/fax number: +40 372 161930/ +40 372 868518

Sole registration number at the Trade Register Office: 1590082

Fiscal attribute: RO

Trade Register Number: J 40/8302/1997

Share capital: RON 6,231,166,705.80

Regulated market on which the issued securities are traded: Bucharest Stock
Exchange and London Stock Exchange

 

 

Significant event to be reported:

Commencement of process to delist and to cancel trading of the GDRs, as well
as to terminate the GDRs deposit agreements

 

OMV Petrom S.A. (the "Company") announces the commencement of the process of
delisting the global depositary receipts ("GDRs") from the standard listing
segment of the Official List (the "Official List") of the Financial Conduct
Authority, of cancellation of trading of the GDRs on the Main Market of the
London Stock Exchange plc (the "London Stock Exchange") (the "Delisting") and
of termination of the deposit agreements in respect of the GDRs dated 19
October 2016 between the Company and Citibank N.A. (the "Depositary") (the
"GDR Deposit Agreements").

As announced including via a Regulatory Information Service, the relevant
resolutions to approve the Delisting were passed at the Extraordinary General
Meeting of Shareholders of the Company of 26 April 2023 by a majority of
approximately 90% of the share capital and 99% of the total votes held by the
present or represented shareholders (the "EGMS"). 1 

Following such resolution of the EGMS and the decision of the Executive Board
of the Company of 23 August 2023 approving, amongst other things, the details
of the Delisting, the Company announces today the commencement of the process
for the GDRs representing interests in the Company's ordinary shares to be
removed from the Official List of the Financial Conduct Authority and the
trading of the GDRs on the Main Market of the London Stock Exchange to be
cancelled.

By way of background, the GDRs have been admitted to trading on the Main
Market since 20 October 2016. At that time, the listing on the London Stock
Exchange was chosen in order for the Company to gain access to a larger
investor base and also due to the low level of liquidity and accessibility
limitations on the Bucharest Stock Exchange. Since then, there has been a
steep reduction to the number of GDRs in issue to around 5% of the initial
volume at the time of listing, which the Company believes reflects a low level
of investors' interest in the GDRs, especially since 2019, which is
corroborated with an increase in investors' interest in the Bucharest Stock
Exchange. As compared to 2018, the traded value of the GDRs decreased by 97%
in 2022 to USD 0.3 million and an average of USD 1,250 per day. As of 31 July
2023, the GDRs accounted for only 0.03% in the Company's share capital with
the total capitalisation of the GDRs only representing USD 2.3 million. The
Bucharest Stock Exchange's development over the years, the inclusion of the
Company in the FTSE Russell EM indices and the market-making services
contracted by the Company since September 2021 have made the shares traded on
the Bucharest Stock Exchange more attractive, from liquidity perspective, than
the GDRs traded on the London Stock Exchange.

Against this background and considering also the ongoing regulatory compliance
and administrative costs the Company incurs as a result of its London listing,
the Company does not see a relevant benefit of maintaining this listing.
Consequently, the Company is now seeking the cancellation of the listing of
its GDRs on the Official List and of their trading on the Main Market.

An application has been made to the Financial Conduct Authority for the GDRs
to be removed from the Official List of the Financial Conduct Authority and to
the London Stock Exchange for trading in the GDRs to be cancelled, both with
effect from 26 October 2023.

The last day of trading in the GDRs on the London Stock Exchange is expected
to be 25 October 2023.

The cancellation of the listing and of trading in the GDRs on the London Stock
Exchange is expected to take effect at or about 8:00 a.m. on 26 October 2023.

Shortly after this announcement, the Company shall also serve a formal notice
to the Depositary to terminate the GDR Deposit Agreements.

As previously announced 2 , the Company has convened the Ordinary General
Meeting of Shareholders to be held on 12 September 2023 (first convening) to
resolve, among others, the payment of special dividends to the holders of
shares (including underlying shares represented by GDRs) as of the record date
of 28 September 2023, to be paid on 19 October 2023.

 

 

Christina
Verchere
    Alina Popa

Chief Executive Officer
 
    Chief Financial Officer

President of the Executive Board
 
Member of the Executive Board

 

 

 1 
https://www.londonstockexchange.com/news-article/PETB/egms-resolutions/15933371
(https://www.londonstockexchange.com/news-article/PETB/egms-resolutions/15933371)

 2 
https://www.londonstockexchange.com/news-article/PETB/notice-of-gms/16061574
(https://www.londonstockexchange.com/news-article/PETB/notice-of-gms/16061574)

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