Selling PVD
Administradora de Fondos de Pensiones Provida S.A. (PVD) shares will not be trading on the NY Stock Exchange after today. Tomorrow, shares will be harder to sell. Strangely, I wasn't able to find information on the internet, but Paul just sent me a copy of the email he received from Interactive Brokers.
We're selling PVD out of the Virtual Portfolio today at $87.18.
More details:
From: Interactive Brokers dated July 18, 2014
Holders of AFP Provida S.A. American Depository Receipts (ADR) are advised that the Company has elected to terminate the Deposit Agreement effective 2014-09-18.
As of the termination time, it is expected that trading of the ADR will cease and the Depositary will halt issuance of the ADR. The Depository's cancellation books, however, will remain open through 2015-03-17 to facilitate conversion of the ADR into the underlying shares for holders wishing to retain their interest in shares of the issuer.
Please be advised that trading of the underlying asset will not be supported by IB. If a holder chooses to convert the terminated ADR into the underlying asset, they will need to meet the following requirements and/or perform the following tasks to complete the transaction:
– Establish an account in the domestic market of the underlying asset
– Advise IB via Inquiry Ticket to Customer Service of the intent to convert the terminated ADR into the underlying asset
– Initiate a Free-Of-Payment (FOP) transfer to deliver the terminated ADR to the DR agent
– Agree to pay the applicable cancellation and conversion fees (may also include local stamp duty taxes)
IB will prepare and submit the applicable documentation to the DR agent to support the conversion. There will be no additional fees applied by IB to facilitate the conversion of the ADR.
As soon as practicable after 2015-03-17, the Depository shall sell the underlying shares and deliver the net proceeds of any such sale on a pro-rata basis to holders of remaining ADRs, less any applicable cancellation fees and without liability or interest. There can be no estimated time-frame as to when the final liquidation of the terminated ADRs will occur.
Holders are therefore provided with the following choices with respect to their position in the ADR:
– Close out of the ADR holding prior to the termination date
– Transfer the ADR position to an account with another broker which will support trading in the underlying asset
– Submit ADR for conversion, receive underlying asset in holder's external account in domestic market
– Take no action and maintain holding of terminated ADR until liquidation
Holders are advised to carefully review the available options to determine the best course of action under the circumstances and manage their risk accordingly."
