Russian miner Mechel OAO MTL announced that it has received notice from the New York Stock Exchange (“NYSE”) stating that the company’s American Depositary Receipts (ADRs) are in agreement with the listing norms of the NYSE. The listing norms require an ADR’s average closing price to be not lower than $1 over 30 consecutive trading days.
Mechel had earlier received notice from the NYSE on Oct 30, 2014, stating that the company’s ADRs were no longer in agreement with the listing norms. Since then, the company’s shares had been assigned a <.BC> suffix. On Jan 29, 2015, the closing price for ADRs exceeded $1 and continued to rise throughout February. Finally on Feb 27, 2015, the average closing price of the company’s ADRs over 30 consecutive trading days stood at $1.26 per ADR.
On Mar 2, 2015, Mechel received an official notice from the NYSE that the <.BC> suffix from its shares will be removed as its ADRs are now in agreement with the NYSE listing norms.
Mechel is a leading steel and coal producer, with a strong position in key businesses, including the production of specialty steel and alloys. The company recently announced that it has divested Mechel Bluestone, Inc. (Delaware, USA), including its mining operations, to a company owned by the Justice family. The deal includes a cash payment of $5 million and royalty payments on coal mined and sold in an amount of $3 per ton.
Other well-placed companies in the steel industry include Kobe Steel Ltd. KBSTY, ThyssenKrupp AG TYEKF and LB Foster Co. FSTR.
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