So about this process. BNYM and Gazprombank are still on speaking terms. Because the forced conversion exists of two parts. Automatic conversion and declarative conversion. Before the AC the books closed and GPB did the full AC. After that was done for the Russian people at the Russian banks, GPB said to NYM: “hey, for these 1,000 russian customers we converted 10 million ADRS into 20 million shares”. BNYM checked their books and cancelled these 10 million ADRS and reopened the books. Now…. The Declarative Conversion is anoyher thing. We must go the Moscow and apply for the DC. Another 1,000 foreign people apply for the DC with their 10 million ADRs. They all get their 20 million russian shares. Now GPB will only say: we got 1,000 people with 10 million adrs. BNYM won’t cancel them. These 1,000 people ALL will have to send an email to their local broker and tell the broker: “hey, I just went to moscow. I got my adrs converted into russian shares, cancel my adrs”. Then All these few hundred brokers will send 1,000 messages to BNYM for each cancellation and as soon as BNYM will have 1,000 emails that add up to 10 million ADRS they will cancel these 10 million ADRS and say: “we reconciled everything and reopen the books again”. The question remains: will all of these 1,000 DC customers immediately tell Their broker that they got the shares? Or will it be a mess? The only way to get the books exactly opened is that GPB says: “ hey you applied for DC and we are ok with you. Now cancel your adrs and show us the cancellation. As soon as yours are cancelled, we put them in your account” . That is the way the process should be to match 100%. |