MOSCOW, August 16. /TASS/. MMK (Magnitogorsk Iron and Steel Works) has initiated the automatic Global Depositary Receipt (GDR) conversion process.

"On 15 August 2022, MMK sent a conversion notice to JSC Citibank, the depository bank managing the depository program's custody account, regarding the automatic conversion of MMK GDRs into MMK shares in line with Article 4 of Federal Law No. 319-FZ On Amendments to Certain Legislative Acts of the Russian Federation, dated 14 July 2022, and the Resolution of the Bank of Russia's Board of Directors dated 22 July 2022, which specifies the period and procedure for the automatic conversion of GDRs into shares," the company said in a statement on Tuesday.

"Based on the Automatic Conversion Procedure and the date of the Notice, MMK believes, but does not guarantee, that the automatic conversion process will take place by 5 September. As a result of the process, holders who meet the requirements of Law 319-FZ and the Automatic Conversion Procedure will have MMK GDRs written off from their securities accounts by depositary banks, which is currently managing these accounts, and the equivalent number of MMK shares will be deposited," the statement said.

MMK is one of the largest global steel producers. Its operations in Russia include a steel producing complex encompassing the entire production chain, from preparation of iron ore to downstream processing of rolled steel. Chairman of the board of directors Viktor Rashnikov is the main shareholder of the company, holding 79.76% of shares, while the remaining stock is in free float.