Far East Telecom Announces ADR Ratio Change
OREANDA-NEWS. On 22 July 2008 Far East Telecom (RTS: ESPK, MICEX: DLSV, ADR OTC: FEEOY, Deutsche Bourse & Berlin Stock Exchanges: D7A), a leader at Far East Region telecommunications market, announced an ADR ration change since 24th July 2008 for American depository receipts (ADR) of the 1st level issued to the company’s ordinary shares.
ADR ratio will be changed from 30 ordinary shares per 1 ADR to 5 ordinary shares per 1 ADR. In connection herewith, shareholder, which own one (1) ADR of the company will own six (6) ADR of the company.
Depository bank JPMorgan Chase will organize ADR ration changing at following dates:
ADR record date: July 24, 2008;
ADR payment date: July 31, 2008.
As Sergey Frolov, Far East Telecom Chief Financial Officer, mentioned, the changing of ADR ratio is making for the purpose of ADR liquidity increasing. Since 2001, when ADR program was started, a price of the company’s basic assets (ordinary shares) has been increased by 18 times and increased standard price level for similar types of securities at US over-the-counter market. 1:5 ratio will allow to decrease ADR price from \\\\$120 to \\\\$20 per unit and to increase amount of ADR outstanding.
"We choose such ratio, because it allows to expected price per one receipt to reach a peer companies ADR prices lower level. We hope, that this fact will positive influence to brokers and investors interest to our company, which is undervalued in comparing to peer companies", - mentioned Sergey Frolov.
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