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Severstal submits notification for automatic conversion of GDRs

It is noted that the production capacity of the company roughly totals 12 mln tonnes of steel per year

MOSCOW, August 15. /TASS/. Severstal has notified its depositary, Sberbank, on the action required for the holders of global depositary receipts (GDRs), the rights to which are recorded in Russian depositories, to obtain the corresponding number of ordinary shares of the company.

"Based on the notification sent to PJSC Severstal, the Depository of PJSC Sberbank will automatically convert the GDRs, the rights to which are registered in depositories in the Russian Federation, into ordinary shares of PJSC Severstal in accordance with the procedure and terms established by the decision of the Board of Directors of the Bank of Russia dated July 22, 2022," Russia’s metals and mining company said in a statement on Monday.

For Severstal GDRs, the rights to which are registered in foreign depositories, a forced conversion is possible upon application of their holders, which application can be sent to the Depository of Sberbank by October 12, 2022, the company added.

Severstal is a vertically integrated steel and mining company, one of Russia’s largest steel producers. Cherepovets Steel Mill is the company’s key asset. Its production capacity roughly totals 12 mln tonnes of steel per year.

Chairman of the board of directors Alexey Mordashov who holds 77.03% of shares, is the main shareholder of Severstal. The remaining stock is in free float.