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Showing posts with the label MTS

Discounts applied upon liquidation of shares (underlying ADRs)

After the liquidation of the Sberbank shares underlying the ADR-program, various investors seem to wonder what the background is of this discount. Decree No. 81 of the President of the Russian Federation dated March 1, 2022, "On Additional Temporary Economic Measures to Ensure the Financial Stability of the Russian Federation" (Decree No. 81; https://www.consultant.ru/document/cons_doc_LAW_410578/ ) established a special procedure for the execution of transactions involving securities between residents of the Russian Federation and "persons of foreign states committing unfriendly acts". According to the general rule stipulated by Decree No. 81, transactions involving securities between residents of the Russian Federation and "unfriendly persons" are only possible with the permission of the Government Commission for the Control of Foreign Investment in the Russian Federation (the Government Commission). The minutes of the Government Commission meeting of th...
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JP Morgan liquidated shares underlying MTS ADRs

In April 2026 JP Morgan accounced that it has liquidated the shares underlying the ADRs of Mobile Telesystems (MTS): https://api.markitdigital.com/jpmadr-public/v1/cms/document?cmsId=8043843bdfc5456fafcbf1f694cc0f6a&sequenceNo=1 JP Morgan sold the underlyings shares for $0.820352 per share, so $1.640704 per ADR. This amount is quite a bit less than the tender offer by MTS back in 2024 for 95 Rubles per ordinary share ( https://ir.mts.ru/en/tender_offer ). JP Morgan did not participate in the tender offer back then. After fees and the correction for missing underlying shares due to forced conversion the cash distribution per ADR will be $ 1.582695 upon cancellation of the ADRs. The liquidation sale was executed at a significant discount to the current price at the Moscow Stock Exchange (MOEX) is approximately 220 Rubles per ordinary share (so 440 Rubles per ADR). JP Morgan has so far sold the underlying shares of three Russian ADR-programs at significant discounts to the share price...
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Update on Russian case law regarding financial compensation from Raiffeisenbank for unlawfully rejecting a request for forced conversion

In this post we provide a third update on recent Russian court decisions. Case 3: Raiffeisenbank was ordered to pay financial compensation for failing to execute a request for forced conversion The third case involves mr. Nesterenko that held ADR's (depositary receipts) of MTS via Interactive Brokers. Mr. Nesterenko requested Raiffeisenbank forcefully convert of his MTS ADR's. Raiffeisenbank Russia refused the request which a general statement that included various reasons why such a request can be rejected. Mr. Nesterenko considered the rejection to be unlawful and went to court to request compensation from Raiffeisenbank. The court determined that mr. Nesterenko submitted the documents that he could reasonably gather and that Raiffeisen put unreasonable conditions in place. The court also considered that Raiffeisenbank, as a professional bank, has it's own resources to verify the information that was provided. The court decided that Raiffeisenbank had to pay compens...
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