MTS received a notification from the New York Stock Exchange (NYSE) that NYSE employees have begun the procedure of delisting American Depositary Receipts (ADR) of MTS PJSC, each of which represents the rights to two ordinary shares of MTS. This is stated in the company's message.
NYSE decided to exclude MTS ADR from the listing, taking into account the company's statement dated June 9, 2022 that MTS informed the depository of the MTS ADR program - JPMorgan Chase Bank, N.A. - of its intention to terminate the depository agreement from July 13, 2022. The MTS ADR trades were suspended on February 28, 2022 and did not resume until the market opened on July 13, 2022.
MTS has the right to review this action by a committee of the NYSE Board of Directors. However, MTS does not intend to appeal the NYSE ruling, taking into account the current legislation of the Russian Federation and the decision of the Government Commission of the Russian Federation on Foreign Investment Control to continue the circulation of MTS ADR until July 12, 2022 (inclusive). Thus, it is expected that MTS ADRs will be excluded from the listing.
Under the terms of the depository agreement, the conversion of MTS ADR into MTS ordinary shares should be completed within six months after July 12, 2022, that is, January 13, 2023.
PJSC "Mobile TeleSystems" (MTS, TIN 7740000076) together with its subsidiaries serves about 100 million mobile subscribers in Russia, Armenia, Belarus, Ukraine, Turkmenistan. The company also provides fixed-line and cable TV services in all federal districts of Russia and in Ukraine. The authorized capital of MTS is 199.84 million rubles (1998381575 outstanding ordinary registered shares).
MTS revenue under IFRS for the first quarter of 2022 increased by 3.5% to RUB 134.45 billion from RUB 123.94 billion a year earlier. Adjusted OIBDA increased by 1.2% to RUB 56.08 billion from RUB 55.4 billion. Adjusted net profit in the share of AFK decreased by 74.5% to RUB 2.06 billion from RUB 8.09 billion.
