RE: Ukraine..........1 Mar 2022 16:01
Tecans evr
The biggest risk I can see for UK shareholders is that Evraz will delist its shares and move to a single listing on the Moscow Stock Exchange.
This might not be a big problem for the group’s controlling shareholders. These include Chelsea FC owner Roman Abramovich, who owns 29% of Evraz. Abramovich and four others control 66% of Evraz stock. My guess is that they’d be able to maintain their ownership and continue receiving dividends if Evraz moved to the Moscow Stock Exchange.
However, UK shareholders probably wouldn’t be able to own Moscow-listed shares. As a result, they could be forced to sell at a very poor price when the stock was delisted.
For me, this is probably the biggest reason for last month’s share price falls. I’m pretty sure Evraz will survive, but UK shareholders could be forced to sell at rock bottom prices.
This risk is impossible for me to measure, but it could do serious damage to my wealth. For this reason, I’m not going to buy Evraz shares, however cheap they might look.