State-controlled YPF wants to keep its ADS listed in the New York exchange
Argentine state-controlled energy company YPF said it risks having its American Depositary Shares (ADS) de-listed by the New York Stock Exchange since it is not complying with all regulatory requirements.
The company stopped complying after the government took administrative control of YPF in mid-April. The president promulgated a law in early May to expropriate a controlling stake in YPF, which was owned by Spain's Repsol.
YPF ADS price sank more than 6% after the news was reported, compared with 2% decline beforehand.
In a filing to the US Securities and Exchange Commission, YPF said it stopped complying with the audit committee requirements as of April 16.
If we fail to cure this deficiency, NYSE rules provide that the NYSE may initiate suspension and delisting procedures with respect to our securities, the filing said.
If our ADS are de-listed from the NYSE, there may be a limited market for our ADS; trading in our ADS may become more difficult and the price of our ADS could decrease even further, the company said.
”In addition ... our ability to raise additional capital would likely be impaired”.
However a spokesperson said that there is no interest from YPF in stopping trading in the New York Stock Exchange and there is no risk of de-listing.
“Next June 4 the shareholders assembly will formally name the new directors of YPF and then they will decide the naming of the new Audit Committee” according to an official release.
Meanwhile President Cristina Fernández extended for another 30 days the government’s intervention on recently partially nationalized oil company YPF. The decree 732/2012 was published Wednesday on the nation’s Official Gazette.
Planning Minister Julio de Vido and Deputy Economy Minister Axel Kicillof are to remain as trustees of the oil company. According to the text, the extension is due to the “magnitude and complexity of tasks lying ahead”.