Santiago-SQM said March 3 that its board of directors has approved a ratio change for its series B ADRs. SQM also plans to voluntarily delist its series A ADRs from the New York Stock Exchange. SQM plans to modify the ratio of ordinary shares to series B ADRs from the current 10:1 to 1:1. From the perspective of the series B ADR holder, the ratio change has the same effect as a ten-for-one share split, with series B ADR holders receiving nine additional series B ADRS for every series B ADR held. There will be no change to SQM underlying ordinary shares traded on the Santiago Stock Exchange (SSE). SQM hopes the move will improve liquidity and make the company more accessible. The new ratio is slated to go into effect March 31, 2008. SQM also plans to delist its series A ADRs from the NYSE due to their low trading volume. At the end of 2007, SQM said less than 1 percent of SQM’s outstanding shares were held by series A ADR holders. The delisting is slated for March 27, 2008. Holders of series A ADRs can convert them to ordinary shares. If they have not done so within a year, the shares will be sold and the holder will be sent the proceeds. SQM said the delisting will have no impact on the ordinary shares traded on the SSE or series B ADRs. SQM said it will continue to comply with Securities Exchange Commission reporting requirements.
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