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Announcement of Intention to Delist American Depositary Shares From the New York Stock Exchange and Subsequent Arrangements

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Almacenes Éxito (NYSE: EXTO) has announced its Board's approval to voluntarily delist its American depositary shares (ADSs) from the NYSE and deregister under the U.S. Securities Exchange Act. The company plans to file Form 25 with the SEC on December 30, 2024, with delisting expected to become effective ten days later. The last trading day on NYSE is expected to be around January 9, 2025.

The decision stems from the company's reduced free float of 13.2% (1.6% in Colombia, 1.6% in US, and 10% in Brazil) and aims to create a more efficient structure by concentrating trading in the Colombian market. The ADS program, managed by JPMorgan, will terminate on January 21st, 2025. The company's common shares will continue trading on the Colombian Stock Exchange (BVC), while alternatives for its Brazilian BDR program are under evaluation.

Almacenes Éxito (NYSE: EXTO) ha annunciato l'approvazione del suo consiglio di amministrazione per ritirare volontariamente le sue azioni di deposito americane (ADS) dalla NYSE e disiscriversi ai sensi del Securities Exchange Act degli Stati Uniti. L'azienda prevede di presentare il Modulo 25 alla SEC il 30 dicembre 2024, con il ritiro previsto che diventerà efficace dieci giorni dopo. L'ultimo giorno di contrattazione sulla NYSE è previsto intorno al 9 gennaio 2025.

La decisione deriva dalla riduzione del flottante dell'azienda, che attualmente è del 13,2% (1,6% in Colombia, 1,6% negli Stati Uniti e 10% in Brasile) e mira a creare una struttura più efficiente concentrando le contrattazioni nel mercato colombiano. Il programma ADS, gestito da JPMorgan, si concluderà il 21 gennaio 2025. Le azioni ordinarie dell'azienda continueranno a essere scambiate sulla Borsa valori colombiana (BVC), mentre sono in fase di valutazione alternative per il suo programma BDR in Brasile.

Almacenes Éxito (NYSE: EXTO) ha anunciado la aprobación de su junta directiva para deslistar voluntariamente sus acciones depositarias americanas (ADS) de la NYSE y desregistrarse bajo la Ley de Mercado de Valores de EE. UU. La compañía planea presentar el Formulario 25 a la SEC el 30 de diciembre de 2024, con la desacreditación esperada para hacerse efectiva diez días después. El último día de operación en la NYSE se espera alrededor del 9 de enero de 2025.

La decisión proviene de la reducción del flotante libre de la compañía, que es del 13,2% (1,6% en Colombia, 1,6% en EE. UU. y 10% en Brasil) y tiene como objetivo crear una estructura más eficiente al concentrar el comercio en el mercado colombiano. El programa de ADS, administrado por JPMorgan, finalizará el 21 de enero de 2025. Las acciones comunes de la compañía continuarán negociándose en la Bolsa de Valores de Colombia (BVC), mientras que se están evaluando alternativas para su programa BDR en Brasil.

알마세네스 에히토 (NYSE: EXTO)가 NYSE에서 미국 예탁 주식(ADS)를 자발적으로 상장 폐지하고 미국 증권 거래법에 따라 등록 취소하기 위해 이사회 승인을 발표했습니다. 회사는 2024년 12월 30일에 SEC에 25번 양식을 제출할 예정이며, 상장 폐지는 10일 후에 효력이 발생할 것으로 예상됩니다. NYSE에서의 마지막 거래일은 2025년 1월 9일경으로 예상됩니다.

이 결정은 회사의 유통 비율이 13.2% (콜롬비아 1.6%, 미국 1.6%, 브라질 10%)로 감소한 것에 기인하며, 콜롬비아 시장에서 거래를 집중시켜 보다 효율적인 구조를 만들기 위한 것입니다. JPMorgan이 관리하는 ADS 프로그램은 2025년 1월 21일에 종료됩니다. 회사의 보통주는 콜롬비아 증권 거래소(BVC)에서 계속 거래될 예정이며, 브라질 BDR 프로그램에 대한 대안이 평가되고 있습니다.

Almacenes Éxito (NYSE: EXTO) a annoncé l'approbation de son conseil d'administration pour radiquer volontairement ses actions de dépôt américaines (ADS) de la NYSE et se désinscrire en vertu de la loi américaine sur les valeurs mobilières. L'entreprise prévoit de déposer le Formulaire 25 auprès de la SEC le 30 décembre 2024, avec une radiation qui devrait entrer en vigueur dix jours plus tard. Le dernier jour de négociation sur la NYSE est prévu aux alentours du 9 janvier 2025.

Cette décision découle de la réduction du flottant libre de l'entreprise, qui s'établit actuellement à 13,2% (1,6% en Colombie, 1,6% aux États-Unis et 10% au Brésil) et vise à créer une structure plus efficace en concentrant le commerce sur le marché colombien. Le programme ADS, géré par JPMorgan, prendra fin le 21 janvier 2025. Les actions ordinaires de l'entreprise continueront d'être négociées à la Bourse de Colombie (BVC), tandis que des alternatives pour son programme BDR au Brésil sont en cours d'évaluation.

Almacenes Éxito (NYSE: EXTO) hat die Genehmigung seines Vorstands angekündigt, freiwillig seine amerikanischen Hinterlegungsscheine (ADS) von der NYSE abzubestellen und sich gemäß dem US-Wertpapiergesetz abzumelden. Das Unternehmen plant, am 30. Dezember 2024 das Formular 25 bei der SEC einzureichen, wobei die Abbestellung voraussichtlich zehn Tage später wirksam wird. Der letzte Handelstag an der NYSE wird voraussichtlich um den 9. Januar 2025 liegen.

Die Entscheidung resultiert aus dem reduzierten Streubesitz des Unternehmens von 13,2% (1,6% in Kolumbien, 1,6% in den USA und 10% in Brasilien) und zielt darauf ab, eine effizientere Struktur zu schaffen, indem der Handel auf den kolumbianischen Markt konzentriert wird. Das von JPMorgan verwaltete ADS-Programm wird am 21. Januar 2025 beendet. Die Stammaktien des Unternehmens werden weiterhin an der kolumbianischen Börse (BVC) gehandelt, während Alternativen für das brasilianische BDR-Programm bewertet werden.

Positive
  • Strategic consolidation of trading to increase liquidity in Colombian market
  • Continued listing on Colombian Stock Exchange (BVC)
  • Decision not driven by compliance issues or costs
Negative
  • Reduced market accessibility for US investors
  • Low free float of only 13.2% across all markets
  • Potential decrease in international visibility and trading volume

Insights

<p>This delisting announcement represents a strategic corporate restructuring that will significantly impact Éxito's market presence. The company's decision to consolidate its trading to the Colombian market (BVC) from its current tri-market presence (NYSE, BVC and B3) is driven by its low free float of <percent>13.2%</percent>. <b>The strategic rationale focuses on improving trading efficiency and liquidity in its domestic market</b>, rather than cost savings or compliance issues.</p><p>The structured exit from the NYSE, planned for January 2025, includes terminating the ADR program with JPMorgan. For investors, this means ADR holders will need to decide whether to sell their positions or convert to ordinary shares on the Colombian exchange. The timeline provides adequate notice for institutional investors to adjust their positions. The company's commitment to maintaining disclosure standards and continuing its presence on the BVC suggests a focus on market optimization rather than reduced transparency.</p>

<p>The consolidation of trading volume to the Colombian exchange could potentially enhance price discovery and reduce arbitrage opportunities that currently exist across multiple listings. With the current fragmented free float distribution (<percent>1.6%</percent> each in Colombia and US, <percent>10%</percent> in Brazil), the consolidation should create a more efficient trading environment. <b>The move signals a broader trend among emerging market companies to simplify their trading structures and focus on home markets where they have stronger investor recognition and natural trading interest</b>.</p><p>The planned transition period through 2024-2025 provides sufficient time for market participants to adjust their trading strategies and custody arrangements. The continuation of over-the-counter trading between delisting and ADS program termination offers a practical buffer for position unwinding.</p>

ENVIGADO, Colombia--(BUSINESS WIRE)-- Almacenes Éxito S.A. (BVC: EXITO; NYSE: EXTO; B3: EXCO32) ("Éxito" or "the Company") informs its shareholders and the market in general that today its Board of Directors approved the commencement of the process to: (i) voluntarily delist its American depositary shares (“ADSs”), each representing eight common shares of the Company, from the New York Stock Exchange (the “NYSE”); and (ii) deregister the Company’s securities under the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”), after taking into account a number of considerations, including the Company’s current reduced free float (13.2%), which is distributed between Colombia with 1.6%, the United States with 1.6% and Brazil with 10%, which represents an opportunity for the Company to look forward to a more efficient structure for all stakeholders.

The Company’s decision to embark on a process to delist and deregister its securities is not driven by costs or concerns regarding compliance with the requirements and regulations required to maintain a listing on the NYSE or the other stock exchanges where it has a presence, but rather the proposal is focused on facilitating a more efficient structure, concentrating its float in the Colombian market, which is its natural market, to increase the liquidity of its stock and maximize the return to all its shareholders.

The Company intends to file a Form 25 with the United States Securities and Exchange Commission (the “SEC”) on December 30, 2024 to delist its ADSs from the NYSE. The delisting of the ADSs from the NYSE is expected to become effective ten days thereafter. The last day of trading of the ADSs on the NYSE is expected to be on or after January 9, 2025. From and after that date, the ADSs of the Company will no longer be listed and traded on the NYSE.

Today the Company has also directed JPMorgan Chase Bank N.A. (“JPMorgan”) to terminate its ADS program after delisting its ADSs from the NYSE. Consequently, and in accordance with the terms of the deposit agreement and the ADSs, JPMorgan will provide a notice of termination to all ADS holders containing relevant information for ADS holders regarding required actions. The effective date of the termination of the ADS program will be January 21st, 2025. Between the delisting of the ADSs from the NYSE and the termination of the ADS program, the ADSs may continue to be traded over-the-counter. After the termination of the ADS program, the Company does not intend to seek a listing or registration of its securities on a U.S. national securities exchange or for their quotation in a quotation medium in the United States. However, the Company´s common shares will continue to be traded on The Stock Exchange of Colombia – Bolsa de Valores de Colombia (the “BVC”). The Company will also continue to comply with its information disclosure and other obligations as a listed issuer under the relevant rules of the BVC as well as other applicable laws and regulations. The Company is currently evaluating its performance as a foreign private issuer in Brazil to determine the alternatives for its sponsored Brazilian depositary share (BDR) program in Brazil and will maintain its shareholders and the market in general informed of any developments in that regard.

Once the delisting has become effective and the criteria for deregistration have been satisfied, the Company intends to file a Form 15F with the SEC to deregister the Company’s securities under the Exchange Act. Thereafter, all of the Company’s reporting obligations under the Exchange Act will be suspended unless the Form 15F is subsequently withdrawn or denied. Deregistration and termination of the Company’s reporting obligations under the Exchange Act are expected to become effective 90 days after its filing of Form 15F. Once the Form 15F is filed, the Company will publish the information required under Rule 12g3-2(b) of the Exchange Act on its website, https://www.grupoexito.com.co. Until such time, and for the time being, the Company will continue to be registered under Exchange Act and will continue to comply with its reporting obligations under the Exchange Act.

The Company reserves its rights in all respects, for any reason, to delay or withdraw the aforementioned filings prior to their effectiveness and will issue any further announcement if required under the listing rules or other applicable laws and regulations.

Important Notice Regarding Forward-Looking Statements:

This press release contains forward-looking statements. These statements are statements that are not historical facts, and are based on management's current view and estimates of future economic circumstances, industry conditions, company performance and financial results. The words "anticipates", "believes", "estimates", "expects", "plans" and similar expressions, as they relate to the Company, are intended to identify forward-looking statements. Statements regarding the declaration or payment of dividends, the implementation of principal operating and financing strategies and capital expenditure plans, the direction of future operations and the factors or trends affecting financial condition, liquidity or results of operations are examples of forward-looking statements. Such statements reflect the current views of management and are subject to a number of risks and uncertainties. There is no guarantee that the expected events, trends or results will actually occur. The statements are based on many assumptions and factors, including general economic and market conditions, industry conditions, and operating factors. Any changes in such assumptions or factors could cause actual results to differ materially from current expectations.

Additional Information:

This press release is not an offer of securities for sale in the United States, Colombia, Brazil or elsewhere. It is merely intended for information purposes, under the terms of the applicable laws and regulations, and shall not, in any circumstances, be deemed or considered as an investment recommendation, an offer for sale, or a solicitation or offer for acquisition of securities of the Company.

For further information, please contact:

Éxito Investor Relations Department

Email: ainvestor@grupo-exito.com

Telephone: +57 (604) 604 9696 ext: 306560

Source: Almacenes Éxito S.A.

FAQ

When will EXTO stock stop trading on the NYSE?

EXTO's last trading day on the NYSE is expected to be on or after January 9, 2025.

What happens to EXTO ADSs after NYSE delisting?

After delisting, EXTO ADSs can be traded over-the-counter until January 21st, 2025, when the ADS program terminates.

What is EXTO's current free float distribution?

EXTO's free float is 13.2%, distributed as 1.6% in Colombia, 1.6% in the United States, and 10% in Brazil.

Will EXTO continue trading on any exchange after NYSE delisting?

Yes, EXTO will continue trading on the Colombian Stock Exchange (BVC) and maintain its listing requirements there.

When will EXTO's ADS program termination become effective?

The ADS program termination will become effective on January 21st, 2025.

Stock EXTO logo
Almacenes Exito S.A. American Depositary Share, each representing eight (8) Common Shares

NYSE:EXTO

EXTO Rankings

#2945 Ranked by Market Cap
#853 Ranked by Dividends

EXTO Stock Data

600.26M
1.30B
United States of America