Citibank launches sponsored ADR program for Sainsbury's.NEW YORK--(BUSINESS WIRE)--May 12, 1995--Citibank N.A. and J Sainsbury plc today announced the establishment of a sponsored American Depositary Receipt sponsored American Depositary Receipt An American Depositary Receipt in which the company whose shares are held in custody has direct involvement in issuance of the ADRs. (ADR ADR - Astra Digital Radio ) program. J Sainsbury plc operates four separate retail chains in the UK and USA, which together serve more than 10 million customers a week. In the 52 weeks ending March 11, 1995, Group sales Group sales Block sale (of large amounts) of securities to institutional investors. group sales The distribution of a new security issue to institutional clients. exceeded 12 billion pounds and group profit before tax was 809.2 million pounds, according to the company. Also according to the company, the UK supermarket business is the largest part of the Sainsbury Group, operating 355 supermarkets and accounting for 87.2% of group operating profit Operating profit (or loss) Revenue from a firm's regular activities less costs and expenses and before income deductions. operating profit See operating income. and 79.5% of sales. The company reports its other UK retailing arms as Savacentre, the UK's only specialist hypermarket hy·per·mar·ket n. A very large commercial establishment that is a combination of a department store and a supermarket. hypermarket Noun a huge self-service store [translation of French company with 10 outlets, and the Homebase chain of home improvement and garden centers. Homebase recently acquired the Texas Homecare business, which over the next two years will be integrated into its trading operation to give a combined business of about 300 stores. The company also operates Shaw's Supermarkets, Inc., a chain of 87 supermarkets in New England with a turnover of $2.1 billion and operating profit of $62.3 million for the year ended February 25th 1995. In November Sainsbury's acquired a 16.7% holding in Giant Food Inc., a supermarket group which is the market leader in the Washington and Baltimore areas. Founded in London in 1869, Sainsbury's was privately owned until its public flotation in 1973. The Sainsbury family and its charitable trusts remain major shareholders, and the present chairman, David Sainsbury, is a great-grandson of the founders. The company indicates that its sponsored level-one ADR program is to facilitate the holding of its stock by US investors, therefore broadening its US investor base. It also indicates the commitment of J Sainsbury plc towards the US financial community. The ADR program, for which Citibank acts as depositary, will begin trading in the over-the-counter market over-the-counter market Trading in stocks and bonds that does not take place on stock exchanges. Such trading occurs most often in the U.S., where requirements for listing stocks on the exchanges are strict. under the symbol JSNSY on Wednesday, May 17th. The CUSIP number CUSIP Number An identification number assigned to all stocks and registered bonds. The Committee on Uniform Securities Identification Procedures (CUSIP) oversees the entire CUSIP system. Notes: This system is used in the U.S. and Canada. is 466249 10 9. Each ADR represents four ordinary shares. Citibank is a leading depositary serving over 500 issuers worldwide. The bank began offering depositary receipt depositary receipt A negotiable certificate that represents a company's publicly traded debt or equity. Depositary receipts are created when a company's shares or bonds are delivered to a depositary's custodian bank, which instructs the depositary to issue services in 1928 and has been the leading market innovator in recent years. With a local presence in 95 countries and unparalleled strength in delivering on-line information through its proprietary systems and network, Citibank is uniquely qualified to support the funding needs of issuers around the world. CONTACT: J Sainsbury plc W. Hamilton 44-171-921-7402 Fax: 44-171-921-6597 or Citibank, N.A. Jarvis Cromwell 212/657-0195 Fax: 212/657-7517 |
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