HELP: Delisted MBNKF (US ADR) which is LON: MTRO
Need some help please: am I proper f*cked or there is possibility to recover?
I own MBNKF shares in Wells Fargo Brokerage account. It's an ADR of the London Stock Exchange MTRO. Metro Metro Bank Holding Plc in UK.
Had to buy ADR of the MTRO because Wells Fargo brokerage account only offers US exchanges on their retail platform.
Just found out: June 7 2023 MBNKF was delisted. No notice. Nothing.
However, Metro Bank Plc in UK is still in business just dandy. Trading under MTRO with healthy volume with over 50% of shares owned by institutions.
Called my Wells Fargo Brokerage customer service. Was told the value is $0 and can not be traded. Period.
I also have Interactive Brokers account. Waiting to hear back from IB if they can transfer the ADR MBNKF and convert it to MTRO.
Any ideas?
It’s a bit tough- idk the details super well but i looked at this briefly during the whole China delisting craze cus my boss asked. My understanding was usually there is an exchange offer given out in advance when an ADR gets delisted - either they give you cash or allowed to convert to local shares in advance. If no warning or you miss that, some brokerages are able to do conversions after the fact and some cannot. You will need to find a broker who is capable of converting it for you and transfer the shares there. There is usually a fee to do this if you find one.
If you don’t find anyone capable of converting, you are basically screwed as it is just an unlisted share and you won’t find a market for it. You still technically have a claim on those shares held elsewhere I believe, and you can hold them indefinitely I guess? Maybe they trade again idk?
Many thanks for sharing the experience.
Seems like the only way is to try and transfer the MBNKF shares from Wells Fargo to Interactive Brokers who have direct access to London Stock Exchange and convert MBNKF ADR to MTRO. I also emailed investor relations to Metro Bank see if they can assist.
This is a lesson learned that trading platforms like Wells Fargo, that do not have access to international exchanges - are dangerous to use.
I'm in the same boat. But know the following:
First off, Metro Bank PLC went through a form of reorganization to create a holding company structure. As a result, the shares of Metro Bank PLC were withdrawn and every shareholder received (or should have received) an equivalent amount of shares in Metro Bank Holdings PLC. That is why the original shares were cancelled.
Secondly, MBNKF shares are/were NOT ADRs. They are/were "F Shares" aka "Foreign Ordinaries." It is not easy to find information on exactly what that means but, basically, they represent actual shares of the underlying stock being traded on their native exchange (in this case, the London Stock Exchange). This is different from ADRs, which are ownership stakes in a cache of the underlying stock held in a custodian (or "depositary") bank. With ADRs, an infinite number of trades can take place without a single share of the underlying stock trading hands on the home exchange (the shares just sit in the depositary bank; only the ownership interests change hands). Think of it like an investment company that is only in the business of holding that foreign company's shares -- and you trade shares in the investment company. Every trade of the F Shares, on the other hand, should mirror an actual trade of the underlying stock on its home exchange. "While trades are executed in US dollars by US broker-dealers, the shares are settled, cleared and custodized in the local market." "US investors that purchase the F share appear on the company’s shareholder list based on the local disclosure requirements in the same manner as an investor that purchases shares in the home market."
F Shares can be established for trading on the US (OTC) markets without the participation or knowledge of the underlying company (just like an unsponsored ADR can). All it takes is some broker-dealer or other market maker to file Form 211 with FINRA. I know this much but I have not been able to figure out what broker-dealer did this for MBNKF, despite asking everyone I can think of. If, having received this additional information, you can get further than I did, please let me know!
Regardless, if the above-quoted text is true (I found it on the internet, so it must be true, right?), then either we ourselves or our brokers (Wells Fargo in your case) or their affiliated "street name" custody firms should appear on the actual shareholders lists of Metro Bank ... and should have received the new holding company shares to replace the original (now delisted) shares of Metro Bank PLC. I have been in touch by e-mail with Metro Bank's IR team and we've gone back and forth a few times but, so far, they still insist that they have nothing to do with that matter. I don't think that's correct but I'm keeping on them. The bottom line is that some entity (either the market maker our brokers or their affiliated custodians) got the new shares that are rightfully ours. If no market maker creates a US listing for the new shares, then they won't be liquid in US markets, but that's a bridge I'll cross if/when I get my hands on the shares I'm owed.
In the end, if nobody will help -- not Metro Bank IR, not our brokers, not FINRA, not whatever unknown market maker listed the shares ... then it may be time to contact some investor-class-action law firm(s) and see if they can shake the tree.
Again, if you can take this new information back to Wells Fargo or anywhere else you can think of and you end up finding anything else out, I'd really appreciate if you could post it here. Thanks.
Many thanks for this post. I also reached out to Metro Bank IR - let's connect, I will message you privately
Oh also if it helps here are some identifying number for the MBNKF shares:
CUSIP 896986916
SEDOL BZ6STL6
ISIN GB00BZ6STL67
Heard back from Metro Bank IR - they claim that the shares were automatically transferred and I should have received MTRO
I also got some new information from Metro Bank Holdings IR. They found my stockbroker's company name (it's a big, well-known one but I leaving the name out for now) on their registry of shareholders. That means the shareholders of the NEW stock in Metro Bank Holdings PLC, not just the old/delisted shares of Metro Bank PLC. As you may or may not be aware, shares in your brokerage account are typically held in "street name," meaning that the underlying company sees your stockbroker's name and contact info but not your personal name or contact info. What this means is that (unless Metro Bank IR told you that YOU personally, by name, got the shares) Metro Bank had (in your case) Wells Fargo (or their associated custodial/clearing firm) on their registry and gave those new shares to Wells Fargo. Because this is a rather unusual situation and Wells Fargo may not even be set up to hold custody of non-US-traded shares for you, the messaging probably went to the wrong department or no department or otherwise got lost in the fog of corporate operations.
So, now, what I am doing with my broker (and what you should be doing with Wells Fargo) is trying to figure out what happened to those shares and how they can find their way to their rightful owner (me or you).
The latest is that my broker now shows these shares in my account with their CUSIP rather than their old US trading symbol, with no quotation and no online trading available. They suggested that I could trade the shares (on the London exchange) by calling in to the broker but I haven't tried it and I don't consider that to be 100% confirmed. But it's as far as I'm going to get and I'm going to leave it at that for now.
It was a big mess, but I sold my shares. Only way I will ever trade any shares is on their native exchange with brokers that have access to international markets directly.
Glad to hear you got everything worked out. If you don't mind, I'd love to hear some more details of how you got the shares sold. Did you do it by placing a sell order with Wells Fargo? Also, one thing I find confusing is that the quoted price for MTRO on the London Exchange is about 100x the last quoted price for MBNKF. How did the number of shares of MTRO that you sold correspond to the number of shares of MBNKF that you originally held? Thanks in advance for anything you can share.
Firstly: the London Stock Exchange (LSE) is quoted in pence i.e. 100 pence = 1 sterling (or 1 British pound i.e. GBP). Simply put: divide MTRO quote on LSE by 100, then convert it to USD, EUR or whatever your base currency is.
Secondly: I took all the info coupled with CUSIP/SEDOL/ISIN you shared and ran it by my other broker that has direct access to LSE who accepted the transfer of shares. Thereafter placing a trade was simple.
NB: A massive headache was in the transferring of the shares. Wells Fargo licensed stock brokers were telling me my position was wroth ZERO and nothing could be done i.e. no trading or transfers. Obviously not true. I took the information you shared and direct correspondence from Metro Bank Investor Relations and got the transfer done without even involving Wells Fargo.
Ah, thanks for that! Obviously I don't have experience with the LSE and obviously pence vs. pounds explains the 100x. Anyway, all's well that ends well and I'm glad we could help each out here.
Cheers!
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