Intershop to be Delisted from Nasdaq

Thursday 15 January 2004 22:48 CET | News

Intershop will voluntarily delist from the Nasdaq National Market (Nasdaq) and terminate its American Depositary Receipt (ADR) facility, effective as of the close of trading on February 17, 2004. From that date forward, investors will no longer be able to trade Intershop ADRs on Nasdaq.

Intershop has given notice to Citibank, N.A., the depositary for Intershops ADR facility (the Depositary), to terminate the ADR facility, and plans to conclude its F-6 registration statement with respect to all unissued ADRs in the ADR facility with the U.S. Securities and Exchange Commission. It is expected that both events will also be effective on February 17, 2004. Under the termination provisions set out in the deposit agreement (the Deposit Agreement) between Intershop and Citibank, N.A., holders of Intershop ADRs are entitled to return their ADRs at any time during a six- month period starting February 17, 2004 and ending August 17, 2004. ADRs submitted during that period will be exchanged for the number of Intershops underlying common bearer shares represented by such ADRs. ADR holders who do not submit their ADRs for exchange by the February 17, 2004 deadline will hold non-transferable securities. For Intershop ADRs not submitted for exchange by August 17, 2004, the Depositary will automatically sell the underlying Intershop common bearer shares at the price that the Depositary is able to obtain on the Frankfurt Stock Exchange. The Depositary would then remit the cash proceeds from the sale net of any applicable charges, expenses, taxes or governmental charges to such ADR holders. Intershop is considering the feasibility of shortening the six-month period for ADR holders to exchange their Intershop ADRs for underlying Intershop common bearer shares or, failing which, to receive cash on their disposal by the Depositary. In the event of any shortening of the exchange period, Intershop would make a further announcement to Intershop ADR holders. As announced on October 30, 2003, the Board of Directors of Intershop decided to seek the delisting of its ADRs and terminate its ADR facility due to low trading volume and a low proportion of issued ADRs relative to Intershops total issued and outstanding shares. The average daily trading volume of Intershops ADRs during the 12 months prior to January 9, 2004 was 5,704, compared to 112,108 underlying Intershop common bearer shares for the same time period. As of January 9, 2004, there were 178,750 Intershop ADRs outstanding, representing just 0.8 percent of Intershops total issued and outstanding underlying common bearer shares. Based on these factors and after careful review of the advantages and disadvantages of a continued Nasdaq listing, especially taking into account the costs of maintaining the listing and the ADR facility, Intershops Board of Directors has determined there is no significant benefit in continuing the ADR facility, and therefore the Nasdaq listing, at this time. Intershops continuing commitment to its US operations is not affected by its decision to withdraw its ADR listing from Nasdaq. Intershops total number of shares outstanding and the listing of its common bearer shares on the Prime Standard trading segment of the Frankfurt Stock Exchange will not be affected by the planned actions.

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Categories: Payments & Commerce | Payments General
Countries: World
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Payments & Commerce