Embraer S.A. plans to give eligible American depositary share (ADS) holders three additional units apiece as it changes the ratio from four common shares per ADS to one, while leaving its underlying common shares unchanged.
Under the revised arrangement, one ADS will correspond to one common share. Embraer said the change will not require issuing new common shares. A 2019 U.S. Securities and Exchange Commission-filed deposit agreement set out the existing four-share ratio.
The company set Nov. 9 as the eligibility date; holders on record at that day's close are due the extra ADSs after the Nov. 13 trading session. Trading with the revised ratio is expected to begin Nov. 16, Embraer said.
The ADSs will remain listed on the New York Stock Exchange under EMBJ. JPMorgan Chase Bank, N.A., will carry out the change through an amendment to the Third Amended and Restated Deposit Agreement, according to the company.
Embraer said the adjustment will leave ADS holders' economic value unchanged. “There will be no change in the economic value of the ADS holders' ownership interests,” the company said.
