SANTIAGO, CHILE / ACCESSWIRE / May 25, 2017 / Cencosud S.A. ("Cencosud" or the "Company") (NYSE: CNCO) today announced the delisting schedule from the NYSE and notified the NYSE on May 25, 2017 that it will apply for voluntary delisting of its ADRs from the NYSE, in connection with its announcement on April 28, 2017 relating to its intention to delist from the NYSE, terminate its ADR facility, and deregister with the Securities and Exchange Commission. Please see below for details.
1. Reasons for the Application for Voluntary Delisting of ADRs from the NYSE
In June 2012, Cencosud listed its ADRs on the NYSE in order to improve convenience for overseas investors and increase its capital raising options. Since then, Cencosud has been focused on proactive information disclosure by meeting its reporting obligations under the U.S. Securities Exchange Act of 1934 ("Exchange Act"), preparing consolidated financial statements in accordance with U.S. Generally Accepted Accounting Principles and establishing internal controls in accordance with the Sarbanes-Oxley Act of 2002.
Recently, the Company has been undertaking various initiatives to reduce its operational expenses. As the ADRs currently comprise less than 1% of the total shares of common stock of the Company, and given the increased costs of being a NYSE-listed company, Cencosud has decided to file an application for voluntary delisting from the NYSE as part of its efforts to reduce operational expenses.
2. Stock Exchanges on which Cencosud will maintain its listings
Cencosud will maintain its listings on the Santiago Stock Exchange, the Chile Electronic Stock Exchange, and the Valparaíso Stock Exchange. The Company has not otherwise arranged for the listing of the ADRs, ADSs or shares of its common stock on another national securities exchange in the United States or for quotation of such securities in any other quotation medium.
3. Implementation Schedule of Application for Voluntary Delisting of ADRs from the NYSE
May 25, 2017 - Notice to the NYSE of its application to delist
June 6, 2017 (planned) - Submission of Form 25 to the U.S. Securities and Exchange Commission (the "SEC") to delist from the NYSE
June 19, 2017 (planned) - Effective date of delisting from the NYSE
* The schedule provided above including the anticipated effective dates may be delayed if the SEC objects to the delisting or requests an extended review or for other reasons.
4. Additional Information for ADR holders
Cencosud has also directed The Bank of New York Mellon, as depositary ("BNYM"), to terminate Cencosud's ADR facility. Consequently, and in accordance with the deposit agreement, BNYM will provide 30 days' notice of termination to all ADR holders. Prior to termination of the deposit agreement, expected to occur on or around June 30, 2017, ADR holders are entitled to surrender their ADRs to BNYM for cancellation, and upon payment of the applicable fees, taxes and charges as provided in the deposit agreement, receive the underlying shares of common stock of Cencosud. Following termination of the deposit agreement, BNYM will discontinue registration of transfers of the ADRs and suspend the distribution of dividends to ADR holders. Holders of ADRs should contact BNYM or, to the extent holding ADRs through a bank, broker or other nominee, should contact such bank, broker or nominee with any questions regarding the ADRs.
5. Future Plans
The Company's reporting obligations under applicable U.S. securities laws would continue after the delisting and the termination of the ADR facility. Following satisfaction of the relevant deregistration conditions under the applicable U.S. securities laws, Cencosud intends to terminate its reporting obligations under the applicable U.S. securities laws and deregister all classes of its registered securities. The Company intends to release further information on such deregistration and termination of reporting obligations at a later date.
Cencosud reserves the right, for any reason, to delay these filings, to withdraw them prior to effectiveness, and to otherwise change its plans in respect of delisting, termination of the ADR facility and deregistration and termination of reporting obligations in any way.
For further inquiries, please contact:
Marisol Fernández
Investor Relations Officer
Tel +562 2959 0545
[email protected]
Natalia Nacif
Deputy IR Manager
Tel +562 2959 0368
[email protected]
About Cencosud S.A.
Cencosud is a leading multi-brand retailer in South America, headquartered in Chile and with operations in Chile, Brazil, Argentina, Peru and Colombia. The Company operates in supermarkets, home improvement stores, shopping centers and department stores.
SOURCE: Cencosud S.A.