Suspended stocks dividends

HI

I hold some evraz stocks, which got suspended. Didnt see it coming tbh, but anyway, lets say i can hold it for years untill it will be brought back to the market. What happens with dividend which will paid out in this and next years?

yours
K.M.

You’ll need your crystal ball to answer that one.

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safest assumption that can be made = treat them as a write off and don’t expect to ever receive any of them.

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I hope this Evraz saga serves as a warning to income investors not to be overly focused on yield. EVR has long had a double digit yield which screams volatility. Give me a ULVR or DGE at a steady Eddy 2% any day!

well why should i? they got suspended by ibkr. however i am the owner of those stocks. i should be able to transfer position someday or wait untill they got back to trading. AFAIK nobody can sell them for me. Delisting would be a problem, but so far nobody talks about delisting…

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The situation is unknown, and as you will see from the news, it is the regulators suspending trading in this security.

On the basis the shares are ‘suspended’ by the regulator - it would be prudent to consider the worst case scenario as Dao has suggested, but obviously hope for something better. The situation is fluid, and no-one would be able to answer your question at this time.

Edit: tried to link article but looks like it has a paywall.

As @Dougal1984 & @Dao mentioned, the situation is constantly developing and it really depends on each company whether or not they’ll go ahead with distributing the dividends that they’ve announced.

In a nutshell: As long as the companies pay out the dividends, we’ll distribute what’s due as per usual.

Unfortunately, Evraz has cancelled its upcoming dividend payment, as seen on the screenshot below:

Been announced today that EVRAZ being delisted from FTSE

Have you got a link? I haven’t seen that.

Assume it relates to this. If I understand rightly, I think it means EVR will be removed from Ftse indices rather than be delisted from the LSE but I could be wrong.

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News feed from Hargreaves Lansdown

(Sharecast News) - Four Russian-focused firms are to be deleted from all FTSE Russell indices, including Roman Abramovich’s Evraz, after brokers stopped trading their shares.

The London-listed companies set for deletion are blue chips Evraz, which has already been suspended by the Financial Conduct Authority, and Polymetal International, along with small caps Petropavlovsk and Raven Property Group.

FTSE Russell, part of the London Stock Exchange Group, said it had taken the decision following feedback from market participants as well as its external advisory committees.

It said the ability to buy or sell shares in the four companies had been “severely restricted” because major international brokerage firms no longer supported trading them, meaning there was now “insufficient institutional liquidity and market depth”.

The companies’ deletion from all of FTSE Russell’s indices will be effective from 21 March 2022, as part of the March review.

Both Evraz and Polymetal had been due to drop out of the FTSE 100 into the FTSE 250 in the review. They will now be replaced by NB Private Equity Partners and Standard Life Private Equity Trust, which will be promoted from the UK Small Cap index.

Russian oligarch Abramovich, who also owns Chelsea Football Club, has a stake of around 29% in steel manufacturer Evraz. Abramovich was sanctioned by the UK government last week. This included freezing his assets and a travel ban. The US, UK and European Union have imposed sanctions on a number of Russian companies and individuals following Russia’s invasion of Ukraine.

Ten non-executive directors quit Evraz on Friday in response, leaving chief executive Alexey Ivanov as the sole director.

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Ah thanks. So it’s just being removed from the indexes. Cool.

First time I’ve had shares in a soon to be delisted stock. What does this mean in simple terms? Do I somehow no longer own the shares? Do I still own the shares but can’t trade them? What happens in say five years when everyone has kissed and made up and Evras are allowed back onto “the list”, will I still have the shares I bought and can trade them again? If Trading212 drops my holding from my account will I be issued a (admittedly pointless) certificate of ownership of said shares?

  • You still own the shares
  • You can trade them over the counter
  • The company can get re-listed in the future
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Thank you for answering my questions.