MMK announces the procedure for transferring MMK share recordkeeping to Russian jurisdiction
PJSC Magnitogorsk Iron & Steel Works (“MMK”, the “Group”) (MOEX: MAGN, LSE: MMK) announces the procedure for transferring MMK share recordkeeping to the Russian jurisdiction.
In line with Article 5 of Federal Law No. 319-FZ On Amendments to Certain Legislative Acts of the Russian Federation, dated 14 July 2022 (“Law 319-FZ”), if rights to MMK shares are recorded in a foreign nominee account and restrictions render transactions in these shares at foreign organisations authorised to record and transfer rights to securities impossible, the holder of shares (or other person exercising the rights attached to shares) or the person for whose benefit the holder of shares acts may submit an application before 12 October 2022 (within 90 days of the official publication date of Law 319-FZ) (the “Application Acceptance Period”), requesting a forced transfer of recordkeeping for such securities to a Russian depository managing a foreign nominee account for MMK shares.
Each application for a forced transfer of recordkeeping for MMK shares must be accompanied by documents available under the given circumstances and evidencing:
· the number and ownership of the respective shares;
· that the applicant’s claim is valid and legitimate;
· information about the foreign organisation recording the rights to MMK shares for the applicant (or person acting on behalf of the applicant);
· information about all foreign organisations managing accounts for persons acting on behalf of other persons in which the rights to MMK shares are recorded for the applicant (or person acting on behalf of the applicant); and
· information about the foreign nominee holder with a custody account at a Russian depository in which the rights to MMK shares are recorded for the applicant (or person acting on behalf of the applicant).
Based on the application, within 10 business days of the forced share recordkeeping transfer application deadline, the Russian depository managing a foreign nominee account for MMK shares shall:
· open a holder’s custody account for the applicant; and
· debit the appropriate number of shares from the foreign nominee account and credit said shares to the applicant’s custody account.
Should there be reasonable doubt as to whether information in the forced share recordkeeping transfer application is accurate and/or has been withheld, or should the application include insufficient accompanying evidence, the depository managing a foreign nominee account for MMK shares may refuse to open a holder’s custody account and credit the corresponding number of shares to said account.
Should the total number of shares claimed through the forced share recordkeeping transfer process exceed the number of shares held in the foreign nominee account, no share recordkeeping transfers will take place.