Jun. 7 at 1:15 AM
$MYNA
In most cases, when a German company undergoes a merger or reorganization, it can lead to the termination of its American Depositary Receipt (ADR) program. This termination means that the ADRs representing shares in the German company will be affected, and ADR holders will need to decide how to handle their investment.
Here's what typically happens:
• Notification: The bank that offers the ADR program (the depositary bank) will usually notify ADR holders in writing at least 30 days before the termination.
• Options for Holders:
◦ Surrender and Receive Shares: Holders can surrender their ADRs and receive the underlying foreign ordinary shares of the German company.
◦ Do Nothing: Holders can choose to do nothing, in which case the depositary bank will continue to hold the underlying shares and collect dividends, but cease distributing them to ADR holders. The bank will usually liquidate the shares and distribute the proceeds within a year of the termination.