Sendas Distribuidora S.A. Announces Delisting of American Depositary Shares from NYSE

Sendas Distribuidora S.A. Moves to Delist ADS from NYSE

In an important update for investors and market watchers, Sendas Distribuidora S.A., a well-known player in the Brazilian retail sector, has announced its intention to voluntarily delist its American Depositary Shares (ADSs) from the New York Stock Exchange (NYSE). This decision comes in the wake of a Board of Directors meeting held on December 19, 2024. The delisting aims to streamline operations and realign the company's focus toward its primary market in Brazil.

The company's American Depositary Receipts (ADRs), each representing five common shares, are set to be withdrawn from the NYSE as part of a strategic shift. The ADR program for Sendas will transition to Level 1, allowing investors to retain their ADSs, which will be tradeable on over-the-counter markets following the delisting. The company plans to file a Form 25 with the U.S. Securities and Exchange Commission (SEC) to make this delisting effective by January 9, 2025.

Currently, approximately 87% of Sendas' trading is concentrated on the Novo Mercado segment of B3 S.A., the Brazilian stock exchange. During its corporate reorganization alongside Companhia Brasileira de Distribuição in February 2021, Sendas had listed both its common shares and ADSs. However, the company has reevaluated the benefits of maintaining a secondary listing on the NYSE, concluding that it serves no significant advantage given the predominant trading activity occurring domestically.

By pursuing the voluntary delisting, Sendas aims to reduce operational costs and enhance efficiency, aligning with its long-term strategic objectives as a low-cost provider. This decision reinforces the company’s commitment to its primary market while maintaining high standards of governance to uphold shareholder trust.

In the wake of the delisting, Sendas’ common shares will continue to be actively traded in Brazil on the Novo Mercado. The company is also dedicated to keeping all stakeholders informed about any significant developments regarding this transition. The firm reassured investors that even after the delisting and SEC deregistration process, it will uphold its commitment to transparency and governance practices.

This move reflects a broader trend in the industry where companies assess the benefits of dual listings versus focusing on their primary markets for operational efficiency.

Importantly, the announcement from Sendas includes a notice regarding forward-looking statements, emphasizing that the management’s expectations and projections may vary based on economic and market conditions. Investors are advised to consider these factors and stay tuned for further updates as the company navigates this transitional phase.

As Sendas progresses with this delisting strategy, its stakeholders and market analysts will closely monitor its impact on the company's operations and stock performance. With a keen focus on enhancing shareholder value while reducing costs, Sendas is poised to adapt to changing market dynamics proactively.