ADR Information
ADR - American Depositary Receipts
Sappi is listed on the NYSE with a Sponsored Level III ADR program.
ADR Contact information
Bank of New York
Shareholder relations tel: 1-888-BNY-ADRS
Symbol: SPP
CUSIP: 803069202
Exchange: NYSE
Ratio: 1:1
Country: South Africa
Industry: ForestProducts&Paper
Depositary: BNY (Sponsored)
Effective date: 05 November 1998
Underlying SEDOL: 0775881
Underlying ISIN: ZAE000006284
US ISIN: US8030692029
What is an American Depositary Receipt?
What is a Sponsored Level III ADR?
What are the benefits of ADRs to US investors?
What types of companies issue ADRs?
Is it easy to get information and updates on an ADR company?
Where are Sappi's ADRs traded?
Who is Sappi's depositary for ADRs?
What is the difference between a registered holder and a beneficial ADR holder?
How are ADR dividends paid and taxed?
How can I find out dividend and corporate action information on Sappi?
How can I buy ADRs via a US Broker?
How can I convert ordinary shares in Sappi into Sappi ADRs?
What is an American Depositary Receipt?
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. Also, the dividends are paid to investor 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 a Sponsored Level III ADR?
Companies that wish to list their Depositary Receipts on a US stock exchange (NASDAQ, American or New York), raise capital or make an acquisition using securities, use Sponsored Level II or Sponsored Level III Depositary Receipts. Level II and Level III Depositary Receipt programs require SEC registration and adherence to applicable requirements for US GAAP. These types of Depositary Receipts can also be listed on some exchanges outside the United States. Level II Depositary Receipts are exchange-listed securities but do not involve raising new capital. Level III programs typically generate the most US investor interest because capital is being raised. Generally, companies that choose either a Level II or Level III program will attract a significant number of US investors.
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 ADRs' 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?
ADRs issuers are typically large multinational corporations. Any non-US company seeking to raise capital in the US or increase their base of US investor 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 generally have full information in English about themselves on their websites, as well as on the main depositary bank websites, and are better tracked by the main US financial websites. ADRs listed on US exchanges provide holders with the same level of information as any other US security. Trading information is readily available, financials are reconciled to US Generally Accepted Accounting Principles (GAAP), and the SEC regulates the Company's disclosure to investors.
Where are Sappi's ADRs traded?
The Sappi ADRs are traded on the NYSE. The trading code is SPP. The CUSIP number is 803069202. The ratio between the ordinary share and the ADR is 1:1.
Who is Sappi's depositary for ADRs?
The Bank of New York. 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.
The Bank of New York
Shareholder Relations Department
Church Street Station
PO Box 11258
New York, NY 10286-1258
United States of America
Call Shareholder Relations at 1-888-BNY-ADRS
What is the difference between a registered holder and a beneficial ADR holder?
A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of record. A beneficial 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 Sappi?
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 (Sappi), CUSIP (803069202) or symbol (SPP).
How can I buy ADRs via a US Broker?
You can buy an ADR through any broker, just as you would US securities. You can purchase Depositary Receipts through BNY Brokerage, Inc. BNY Brokerage Inc is a wholly owned subsidiary of The Bank of New York Company and provides professional trade execution to meet all of your investing needs. BNY Brokerage, Inc is a member NASD/SIPC, and is a wholly-owned subsidiary of The Bank of New York Company, Inc. Securities are not FDIC insured and may lose value. Visit the Bank of New York site for more information on buying Sappi
ADRs, by clicking here.
BNY Brokerage, Inc
101 Barclay Street - Floor 12W
New York, NY 10286
Tel 1-800-255-8282
How can I convert ordinary shares in Sappi into Sappi ADRs?
A shareholder wishing to convert JSE Securities Exchange listed ordinary shares in to ADRs should, in the first instance, request that their broker contact the ADR Broker Desk at The Bank of New York. Bank of New York contact details can be found below:
Alternatively, the shareholder may contact the ADR Broker Desk at The Bank of New York direct.
- When contacting the ADR Broker Desk, the broker will be asked to confirm the following information:
- The number of ordinary shares the shareholder wishes to convert into ADRs (based on the current ratio of 1 Sappi ordinary share equals 1 Sappi ADR)
- The custodian name, account name and account number of the account in South Africa from which the ordinary shares will be delivered
- The number of the DTC account in the US to which the shareholder wishes their ADRs to be credited. If the shareholder does not have a DTC account, they will need to appoint a nominee (eg a broker) to hold the ADRs on their behalf.
- Once these details have been confirmed, the broker (or shareholder) should instruct the delivery of the ordinary shares from their custody account in South Africa.
- On the day that the local custodian confirms to The Bank of New York that the ordinary shares have settled in The Bank of New York account, The Bank of New York will instruct the delivery of the equivalent amount of ADRs to the requested DTC account.
- A fee per ADR issued is payable to The Bank of New York upon the delivery of the ADRs. Most commonly, when The Bank of New York delivers the ADRs to the specified DTC account, this is done on a delivery versus payment (DVP) instruction against the conversion fee. If an alternative method of payment is required, please contact the Broker Desk for further details. Where the DTC account is operated by a broker on behalf of a shareholder, the broker should confirm to the shareholder that it has received the ADRs and is holding them on his/her behalf.