UKLA Expected to Change Availability of "Block Listings" for GDRs Representing New Shares - Prompt Action by Companies with London Listed GDRs Might Be Necessary

May 6, 2011

We expect the UK Listing Authority to announce a significant change to the “block listing” facility for companies with GDRs listed in London. The change will make it significantly more cumbersome for those companies to issue new shares, and potentially require companies who have already issued new shares since their IPO to take prompt action. The expected policy change will effectively require companies with London listed GDRs to publish a prospectus whenever they issue new shares, including shares issued pursuant to employee incentive schemes; it may also require them to produce a prospectus as a result of them having issued new shares since their IPO.