PIK Group to delist from London Stock Exchange

MOSCOW, Mar 13 (PRIME) -- Russian real estate developer PIK Group plans to delist its global depositary receipts (GDRs) from the London Stock Exchange to consolidate trade in its shares on the Moscow Exchange, the company said in a statement on Monday.

“The company believes that it stock value does not include transformation and intends to change the situation via a new strategy of active presence on capital markets. Implementation of the strategy will begin with consolidation of free-float on the Moscow Exchange by means of delisting from the London Stock Exchange scheduled for June 15, 2017,” PIK said.

Trading volumes of the company’s stock on the London Stock Exchange were always low, there was a considerable price difference between London and Moscow. Most PIK investors hold the company’s common shares listed on the on the Moscow Exchange, it said.

The company offers to buy-back a total of 49.991 million GDRs from holders located outside the U.S. at $5.101 per security. The price envisages a 13% premium to an average price of the past three months or a 3% premium to the closing price on March 10. The offer expires at 12:00 London time on March 24. If more than the maximum possible amount of GDRs are presented for the buy-back, they will be bought on a proportional basis.

Holders, who decide to decline the offer, may own the shares without listing on the London Stock Exchange and preserve their voting and dividend rights. They will be able to sell them later on the over-the-counter market or convert into common shares listed on the Moscow Exchange, the release said.

(59.2174 rubles – U.S. $1)

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