Tuesday, February 27, 2024

CNMV warns of possible difficulties for Ferrovial to make the jump to Wall Street from Spain

The National Securities Market Commission (CNMV) recognized in April 2023 that Ferrovial’s jump from Spain to Wall Street could present difficulties. Ferrovial announced at the end of February of that year that it was moving its headquarters to the Netherlands to facilitate its access to the New York Stock Exchange, even though the CNMV stated that this intra-community transfer was not a must. However, the local regulator already knew that the operation could “take several weeks or months,” among other difficulties, just a few days before the meeting of the company’s shareholders, which approved the decision on April 13.

According to a note dated April 5, last year, made public this Wednesday due to a request through the Transparency Portal, the regulator warned in response to the request of the Ministry of Economy that the process of making the jump to the New York Stock Exchange from Spain may require more time, while pointing to the possibility of hitherto unknown obstacles arising.

The CNMV emphasized in the report that it did not identify “obstacles or any indication of their existence” to continue this type of operation but warned that “the certainty of its absence” will only come if it is formally requested by the company. In other words, some companies should try their luck and see what happens. In this sense, the entity recognizes that there are “preludes of companies in other European jurisdictions with companies that have gone through” this process and mentions the Netherlands in particular, a sign of what will be confirmed a few days from now.

The publication, which has not been publicly announced, is being promoted by the various parties involved. Sources from the CNMV have already indicated that this option of listing in two countries is not proposed to any Spanish company, except for the use of ADR (American Depositary Receipt) instruments. For this reason, the regulatory body says that it is the American depositary that, if applicable, will analyze specific requests from Spanish issuers interested in this option, but the analysis concludes that “no element has been identified that makes this possible.

On the other hand, Ferrovial was forced to stand before the US regulator before it jumped to Wall Street. Among the risks it admits in the prospectus it registered is the risk that the Treasury will overturn the tax advantages associated with the transfer of Ferrovial’s headquarters from Spain to the Netherlands.

World Nation News Desk
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