UNITED KINGDOM (OBSERVATORY) – The London Stock Exchange will completely stop trading on May 2 with the global depository receipts (GDR) of En + Group Oleg Deripaska, who fell under US sanctions on April 6.
Bidding GDR companies on the rule of Reg S for all investors will be suspended May 2 at 17:15 London time, the LSE said.
Trades with En + depositary receipts under Rule 144A for qualified US investors were stopped as early as April 9 – the first trading day after the announcement of new sanctions.
Trades on the rule of Reg S lasted all April, the closing price of trading on the LSE on Tuesday was $ 6 per GDR.
The LSE report notes that the exchange will continue monitoring the situation and is in contact with the British regulators.
En + became public in November 2017, the volume of IPO that was held at LSE, was $ 1.5 billion. This is the largest IPO of the Russian company in the last five years. En + depositary receipts are also traded on the Moscow stock exchange. In the morning on Wednesday, receipts for En + shares rose by 7.4% (to 420 rubles apiece) on the news on the termination of trading on the GDR on the London Stock Exchange at the beginning of trading at MosBridge.
En + under sanctions
En + along with other assets of businessman Oleg Deripaska was included in the black list of the US Treasury, which presupposes the most stringent restrictions. American organizations and citizens in due time must cease all relations with its participants.
May 7 is the deadline determined by the decision of the US Treasury to transfer obligations on share capital and debt.
En + said at the end of last week that it had sent a request to extend the validity of license N13 to the OFAC (American Aminfine Authority in charge of enforcement in the field of sanctions) on the timeframe for US investors to leave the company’s securities before October 31, 2018, or until the date OFAC deems appropriate.
In addition, the company said that Deripaska is ready to reduce its stake in En + below 50%.