BUCHAREST - Fondul Proprietatea S.A., a Romanian investment fund, has announced the initiation of the delisting process for its global depositary receipts (GDRs) from the Specialist Fund Segment of the London Stock Exchange (LON:LSEG). The decision follows a shareholder vote on December 2, 2024, where a significant majority of 96.27% approved the move.
The GDRs were initially listed on April 29, 2015, with the aim of attracting more demand for the company's shares, broadening the investor base, and enhancing visibility and valuation. However, since reaching a peak in January 2016, interest in the GDRs has waned, with the volume in issue as of September 30, 2024, representing just 2.70% of the company's share capital.
Trading activity for the GDRs has seen a stark decline, with the average daily trading value plummeting by over 97% in 2024 to USD 40,289. This decrease in trading volume has coincided with an increased interest in the Bucharest Stock Exchange, suggesting a shift in liquidity back to the local market.
The delisting reflects Fondul Proprietatea's assessment that the objectives of the London listing have been achieved, and the ongoing costs and regulatory compliance associated with maintaining the listing no longer justify its continuation.
The last trading day for the GDRs on the London Stock Exchange is expected to be April 24, 2025, with the cancellation taking effect at approximately 8:00 am UK time on April 25, 2025. The fund will also terminate the GDR Deposit Agreement with The Bank of New York Mellon (NYSE:BK), the depositary.
Holders of GDRs will receive further instructions from the depositary at least 90 days before the trading cancellation date. This move is part of the fund's broader strategy to streamline operations and reduce administrative burdens.
This information is based on a press release statement from Fondul Proprietatea S.A. and reflects the company's current plans regarding its GDRs listed on the London Stock Exchange.
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