French reinsurer SCOR SE entered into a new liquidity contract with Exane, following changes in the regulations relating to liquidity agreements.
The move is in line with the French markets regulator Autorité des marchés financiers' (AMF's) decision 2018-01 of July 2, 2018, regarding establishing liquidity agreements on equity shares as an accepted market practice.
The new contract, which takes retroactive effect from January 1, 2019, will be in place for 12 months and is renewable. It replaces the existing liquidity contract that began on July 25, 2005 with Exane.
The contract relates to the company’s shares listed on the Euronext Paris regulated market.
As of June 28, 2019, after the close of the stock market, the resources allocated to the liquidity account were €14.37 million and 104,127 shares.
On December 31, 2018, the resources allocated to the liquidity account amounted to €13.79 million and 120,728 shares.
It is further specified that the situations or conditions leading to the suspension of the contract, in addition to those referred to in Article 5 of the AMF Decision, are as follows:
- In the event of a request in that respect of the Company for a period determined by the Company;
- In the event of holding a number of securities SCOR SE equal to the maximum number decided by the General Meeting of the Company, taking into account in particular the Shares already held by the Company in accordance with Article L. 225-210 of the French Commercial Code;
- In the event that the securities SCOR SE is listed outside the intervention thresholds authorized by the General Meeting of the Company; or
- In the event of expiry or suspension of the authorization to repurchase Shares by the General Meeting of the Company.
The contract may also be terminated:
- by the Company, at any time without notice, and
- by Exane, with one month’s notice.
