Natura &Co announces intention to end secondary listing on NYSE

Rhea-AI Summary

Natura &Co (NYSE: NTCO) has announced the delisting of its American Depositary Shares (ADSs) on the New York Stock Exchange (NYSE) while maintaining its primary listing on the B3 stock exchange in São Paulo. The company's decision is part of its long-term strategy to simplify operations, as the majority of its trading activity is concentrated on the B3 stock exchange. The delisting is expected to be effective 10 days after filing with the SEC.

Insights

Market Research Analyst

The decision by Natura &Co to delist its American Depositary Shares (ADSs) from the New York Stock Exchange (NYSE) reflects a strategic move to consolidate its trading activity and reduce complexity and costs associated with maintaining listings on multiple exchanges. This is indicative of a broader trend where companies evaluate the benefits of cross-listing against the regulatory, legal and financial overheads.

From a market perspective, the concentration of trading activity on the B3 exchange suggests that the liquidity and visibility provided by the NYSE listing may no longer justify the expenses. This could be due to a variety of factors, including investor preferences, regional market dynamics, or the company's operational focus. The impact on shareholders will vary; international investors might face reduced accessibility, while local investors could benefit from increased trading volumes on the B3.

Financial Analyst

The delisting of ADSs can have several financial implications for Natura &Co. Firstly, the company might see cost savings from the cessation of listing fees and the administrative burden of complying with NYSE regulations. However, the company's stock could experience decreased visibility among international investors, potentially affecting its valuation. Shareholders should monitor the stock's performance on the B3 exchange closely post-delisting for any changes in trading volume and price volatility.

Investors should also consider the impact of this move on the company's capital raising abilities. While the B3 remains a significant exchange, the NYSE offers access to a larger pool of international capital. The delisting may signal a shift in Natura &Co's capital financing strategy, possibly indicating a greater focus on regional markets or alternative financing methods.

Legal Expert

Legally, the delisting process involves regulatory filings and adherence to securities laws in both the United States and Brazil. Natura &Co's filing of a Form 25 with the SEC is a formal step towards delisting, triggering a 10-day countdown to the suspension of trading on the NYSE. The company must ensure transparent communication with shareholders and comply with both SEC and B3 regulations throughout this transition.

For current and potential shareholders, it is essential to understand the legal ramifications of holding shares that are no longer traded on the NYSE. This includes the potential changes in shareholder rights and protections, as well as any tax implications that may arise from the delisting. The company's adherence to corporate governance standards and disclosure requirements will continue to be critical in maintaining investor confidence.

The delisting of ADRs is the next step in the company's long-term strategy

SÃO PAULO, 18 January 2024 /PRNewswire/ -- Natura &Co (NYSE – NTCO; B3 – NTCO3) announces that its Board of Directors has approved a plan to end the company's secondary listing of American Depositary Shares (ADSs) on the New York Stock Exchange (NYSE), while maintaining its primary listing of common shares on the B3 stock exchange in São Paulo.

In line with the company's long-term strategic objectives of simplifying operations, Natura &Co has decided to discontinue its secondary listing on the NYSE, as the vast majority of Natura &Co trading activity is concentrated on the B3 stock exchange.  The decreasing trading volume of Natura &Co ADRs on the NYSE no longer makes maintaining the listing a compelling option.

The delisting is expected to be effective 10 days after the filing with the U.S. Securities and Exchange Commission (the "SEC") of a Form 25. Natura &Co expects the NYSE to suspend trading in the ADSs on or about 9 February 2024.

Natura &Co has not arranged for listing, quotation and/or registration of the ADRs on another securities exchange or quotation medium.

Fabio Barbosa, Chief Executive Officer of Natura &Co, stated: "The planned delisting of Natura &Co from the New York Stock Exchange is consistent with our long-term strategy for the business. This move underscores our continued focus on simplifying our operations to reduce complexity. We thank Natura &Co investors who held ADRs and look forward to welcoming many of them as shareholders on the B3 market. Upholding our dedication to transparency, we will maintain our high disclosure standards through our listing in Brazil."

About Natura &Co

Natura &Co is a global purpose-driven, group uniting Natura and Avon. We believe in promoting real positive economic, social, and environmental impact. We believe that the world does not need another big company. The world needs symbols of change capable of blazing new trails and inspiring others to follow. We believe in the power of cooperation, co-creation, and collaboration for a better way of living and doing business. 

We are Natura &Co. 

This press release does not constitute an offer to sell or the solicitation of an offer to buy any securities. This press release may contain forward-looking statements which reflect Natura &Co's current view on future events and financial and operational development. Words such as "intend", "expect", "anticipate", "may", "believe", "plan", "estimate" and other expressions which imply indications or predictions of future development or trends, and which are not based on historical facts, are intended to identify forward-looking statements. Forward-looking statements inherently involve both known and unknown risks and uncertainties as they depend on future events and circumstances. Forward-looking statements do not guarantee future results or development and the actual outcome could differ materially from the forward-looking statements. Any forward-looking statements contained in this press release speak only as at the date hereof, and Natura &Co does not assume or undertake any obligation or responsibility to update any forward-looking statement to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

View original content:https://www.prnewswire.com/news-releases/natura-co-announces-intention-to-end-secondary-listing-on-nyse-302038891.html

SOURCE Natura &Co

FAQ

Why is Natura &Co delisting its ADSs on the NYSE?

Natura &Co is delisting its ADSs on the NYSE as part of its long-term strategy to simplify operations, as the majority of its trading activity is concentrated on the B3 stock exchange.

When will the delisting of Natura &Co's ADSs be effective?

The delisting of Natura &Co's ADSs is expected to be effective 10 days after filing with the SEC.

What is the ticker symbol for Natura &Co?

The ticker symbol for Natura &Co is NTCO.

Where will Natura &Co maintain its primary listing?

Natura &Co will maintain its primary listing on the B3 stock exchange in São Paulo.

What is the reason for the decreasing trading volume of Natura &Co ADRs on the NYSE?

The decreasing trading volume of Natura &Co ADRs on the NYSE is the reason for discontinuing the secondary listing, as it is no longer a compelling option.

What regulatory filing is required for the delisting to be effective?

The delisting is expected to be effective 10 days after the filing with the U.S. Securities and Exchange Commission (SEC) of a Form 25.