***** update (Dec 10, 2015): National bank of greece ADR Resumed commerce on the OTC Market, TFS

UPDATE (Nov 27, 2015): NYSE Delisting National bank of greece ADR, TFS

National bank of Greece(NBG) has chose to do another reverse stock split in the proportion of 1:15 this week. Based upon Thursday’s price the the simple share in ~ 0.02 Euros the new price that the stocks would be 0.30 Euros after the reverse break-up is implemented.

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From a Reuters article:

National bank of greek on Thursday priced that share giving to plug a resources shortfall revealed in the European central Bank’s health check, in ~ 0.02 euros every share, or in ~ 0.30 euros every share showing a one-for 15 turning back share split.

The bank, Greece’s biggest lender, claimed investor demand for the shares, coupled through the results of a blame exchange sell to bondholders, reached around 1.16 billion euros. Its resources gap in the ECB’s baseline scenario was 1.456 billion euros.

National bank said a public supplying of brand-new shares in the Greek market at the same price ~ above or roughly Nov. 30 intends to raise one more 300 million euros.

The bank said that an additional 308 million euros will an outcome from more burden sharing. This will encompass the conversion into typical shares that all capital means.

Source: Greece’s National bank prices share providing at 0.02 euros every share, Nov 19, 2015

This is the third reverse stock break-up the financial institution has enforced in the past five years. The ahead splits were 1 because that 5 in 2011 and also 1 for 10 in 2013. Both the times I said that investors prevent the stock.

** NOTE: The actual record Date and also Effective date for the reverse separation has no yet to be announced yet. But the decision to do the reverse split has been made.

This time won’t it is in different. Structural transforms are quiet an issue with the Greek economy. Native labor regulations to retirement age to tax evasion have actually not been reformed. Therefore investors deserve to avoid investing in NBG for the foreseeable future.

The long-term return for National financial institution of greece ADR from Oct 1999 thru Nov 20, 2015 is one astonishing -99.73% according to Google Finance:

Click to enlarge


Source: Google Finance

The ratio of ordinary to Depository Receipt is 1:1. Yesterday the ADR closed at $0.18. After ~ the reverse break-up the stock price will be approximately around $3.60 or therefore depending on the reverse separation effective date.

Here is the official announcement from the depository BNY Mellon released on Nov 25, 2015:

Reverse separation National bank of greece S.A.

DR CUSIP: 633643705 / ISIN:US6336437057

DR Ticker Symbol: NBG

Ratio: (DR: underlying Share): 1:1

Please it is in advised the National bank of greek (“NBG”) has actually announced a re-publishing consolidation of one (1) brand-new share because that every fifteen (15) existing shares. Together a result, BNY Mellon will impact a reverse stock split on the National financial institution of greek Depositary Receipt (“DR”) program. Reliable December 3, 2015, DR holders the NBG are required on a mandatory communication to surrender your DR(s) for cancellation exchange your “OLD” DR(s) (CUSIP #633643705) because that “New” DR (CUSIP # 633643804). DR holders will obtain one (1) “New” Depositary share (“DS”) (CUSIP# 633643804) because that every fifteen (15) “OLD” DSs (CUSIP # 633643705). Only entirety DRS(s) will certainly be distributed. BNY Mellon will attempt come sell any fractional DSs and distribute the cash proceeds come DR holders.

The Effective day for the reverse break-up is Dec 3, 2015.

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UPDATE (Nov 27, 2015):

If you are a holder the NBG, What to perform now?. You might want come checkout: What to do once an ADR is delisted indigenous NYSE or NASDAQ

You can sell the on the OTC industry as NBG is commerce under the ticker NBGGY.

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UPDATE (Nov 28, 2015):

Since NYSE has started the delisting process, the depository BNY Mellon has stopped any issuance or cancellation of ADRs.