This ADR programme does not create new capital in the US, but provides us with an opportunity to develop and expand our US shareholder base. Level I ADRs are traded in the USA on an over-the-counter (OTC) basis. For additional information you can visit The Bank of New York Mellon’s website.
MultiChoice Group ADR Program – Frequently Asked Questions
What is an American Depositary Receipt (ADR)?
An ADR is a negotiable US certificate representing ownership of shares in a non-US corporation. ADRs are quoted and traded in US dollars in the US securities market. Dividends are paid to investors in US dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-US securities by US investors, and to provide a corporate finance vehicle for non-US companies.
What is an American Depositary Share (ADS)?
An American Depositary Share ("ADS") is a US dollar denominated form of equity ownership in a non-US corporation. It represents the foreign shares of the company held on deposit by a custodian bank in the company's home country. One or several ADSs can be represented by a physical ADR certificate. The terms ADR and ADS are often used interchangeably.
What are the benefits of ADRs to US investors?
US investors generally prefer to purchase ADRs rather than ordinary shares in the issuer's home market because ADRs trade, clear and settle according to US market conventions. One of an ADR's main advantages is the facilitation of diversification into foreign securities. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information, if listed. ADR holders also appreciate dollar dividend payments and receiving corporate action notifications.
What types of companies issue ADRs?
ADR issuers are typically large multinational corporations. Any non-US company seeking to raise capital in the US or increase their base of US investors can issue ADRs.
Is it easy to get information and updates on an ADR company?
Investors receive annual reports and proxy materials in English. ADR issuers are generally accessible through websites in English, and through the main depositary bank websites. US-listed ADRs provide holders with the same level of information as any other US security. As MultiChoice Group's ADRs are not listed on a US exchange, MultiChoice Group does not provide US GAAP financial statements.
Where are MultiChoice Group's ADRs traded?
The ADRs are traded over-the-counter. The trading code is MCHOY. The CUSIP number is 62548D100. The ratio between the ordinary share and the ADR is 1:1.
Who is MultiChoice Group's depositary for ADRs?
The Bank of New York Mellon. The depositary bank plays a key role in the process of issuance and cancellation of ADRs. It also maintains the ADR holder register and distributes the dividends in US dollars. For additional information, please visit The Bank of New York Mellon's website at www.bnymellon.com
What is the difference between a registered ADR holder and a beneficial ADR holder?
A registered ADR holder is one whose name appears on the books of the depositary. The registered ADR holder is considered the owner of record. A beneficial ADR holder is one whose holdings are registered in a name other than their own, such as in the name of a broker, bank or nominee.
How are ADR dividends paid and taxed?
Dividends are paid in US dollars and are generally taxable, just like dividends on US shares. In addition, taxes may be withheld by the ADR company's local government. Depending on individual circumstances, foreign taxes withheld might be applied as a credit against US taxes, or tax reclaim opportunities may be offered.
How can I find out dividend and corporate action information on MultiChoice Group?
For dividend and corporate action information, please visit www.adrbny.com. Go to the DR Corporate Actions or DR Dividends & Distribution buttons on the vertical scroll bar on the left and then enter company name, CUSIP or symbol.
How can I buy ADRs via a US Broker?
You can buy an ADR through a broker at the Bank of New York Mellon. For more information please see their Broker-Dealer Services pages on their website.
How can I convert ordinary shares in MultiChoice Group into MultiChoice Group ADRs?
A shareholder wishing to convert Johannesburg Stock Exchange-listed ordinary shares into ADRs should request that their broker contact the ADR Broker Desk at The Bank of New York.