Frequently Asked Questions on ADR
What is an American Depositary Receipt (ADR)?
An ADR is a negotiable U.S. certificate representing ownership of shares in a non-U.S. corporation. ADRs are quoted and traded in U.S. dollars in the U.S. securities market. Also, the dividends are paid to investors in U.S.dollars. ADRs were specifically designed to facilitate the purchase, holding and sale of non-U.S. securities by U.S. investors, and to provide a corporate finance vehicle for non-U.S. companies.
What are the benefits of ADRs to US investors?
US investors may prefer to purchase ADRs rather than ordinary shares in the issuer’s home market because ADRs trade, clear and settle according to US market conventions. One of an ADRs’ top advantages is the facilitated diversification into foreign securities. ADRs also allow easy comparison to securities of similar companies as well as access to price and trading information, if listed. ADR holders also appreciate prompt dividend payments and receiving corporate action notifications.
What types of companies issue ADRs?
ADR issuers are typically large multinational corporations. Any non-U.S. company seeking to raise capital in the U.S. or increase their base of U.S. investor can issue ADRs.
Is it easy to get information and updates on an ADR company?
Information is widely available on GEA’s website. Investors can sign up to receive annual reports and press releases in English. Trading information is readily available on Pink Sheets website.
Where are GEA ADRs traded?
The ADR shares trade OTC (over the counter). You can refer to www.pinksheets.com.
Who is GEA’s depositary for ADRs?
Deutsche Bank Trust Company Americas. The depositary bank plays a key role in issuance as well as cancellation of ADRs. It also maintains the ADR holder register and distributes the dividends in US dollars.
How are ADRs related to GEA ordinary shares?
Every GEA ADR represents one GEA ordinary share, i.e. the ratio is 1:1.
What is the difference between a Registered holder and a Beneficial ADR holder?
A registered holder is one whose name appears on the books of the depositary. The registered holder is considered the owner of record. A beneficial holder is one whose holdings are registered in a name other than their own, such as in the name of a broker, bank or nominee.
What is GEA ADR ticker symbol, CUSIP code and ISIN code?
Ticker: GEAGY
Cusip code: 361592108
ISIN code: US3615921083
How can I find out dividend and corporate action information on GEA?
For dividend and corporate action information, please visit: www.adr.db.com.
Search by GEA and under Company Public View section, select Corporate Actions Calendar. Alternatively you may contact Deutsche Bank Trust Company Americas Shareholder Services on (866) 249-2593.
How are ADR dividends paid and taxed?
Dividends are paid in U.S. dollars and are generally taxable, just like dividends on U.S. shares. The GEA dividend is subject to a German withholding tax of 26.375% of the gross amount. Under terms of the Convention for the Avoidance of Double Taxation Agreement between the United States and Germany, eligible ADR holders may reclaim 11.375%, thereby reducing their withholding tax to 15%.
ADR holders eligible for the refund must be residents of the United States in accordance with the aforementioned Convention. Contact your broker or tax adviser for more information and any applicable U.S. tax forms.
How do I convert my ordinary shares into ADRs?
Converting ordinary shares into ADRs must be done through a broker investment advisor or through Deutsche Bank Trust Company Americas. You can contact Deutsche Bank broker services desk on +1(212) 250 9100.
