OREANDA-NEWS. April 06, 2016. LATAM Airlines Group S.A. ("LATAM") announces that the Board of Directors of LATAM approved the cancellation of the BDR program. LATAM maintains that the foregoing does not affect the long term commitment of Grupo LATAM Airlines within Brazil.

The cancellation will take place through a sale of the underlying common stock of the BDR ("Shares") in the Santiago Stock Exchange, through a procedure named Sale Facility. The BDR holders that don't want to sell their shares may remain as shareholders of LATAM in Chile, acknowledging that each BDR represents one share.

It is worthwhile to note that each BDR represents one common share of LATAM Airlines Group S.A. and as of March 31st, 2016 the BDR program represented 0.44% of the total shares issued by the company.

As such, from this date onwards, BDR holders will have a 30 day period to choose from these options: 

  1. Subscribe to the procedure named "Sale Facility", or

  2. Maintain ownership of LATAM Airlines Group S.A. shares to the underlying BDR.

If a BDR holder doesn't express the option contained in the Procedure, it will be understood for all purposes that the holder opts to subscribe to the procedure denominated "Sale Facility".

The "Sale Facility" procedure is executed through the sale of the underlying common shares of BDRs (the "Common Shares") in the Santiago Stock Exchange. Those BDR holders that express their intention to retain ownership of their respective Common Shares, will become shareholders of LATAM Airlines Group S.A., through the transfer of shares to a stockbroker or a local custodian in Chile, pursuant to an instruction to be executed in compliance with the conditions specified in the Cancellation Procedure

The Cancellation procedure was duly approved by the CVM Council in a meeting held on February 2nd, 2016.