"Grindeks" shareholders Lipmani have started preparing the mandatory share repurchase offer

“Grindeks” has informed the stock exchange that on Monday, April 15, it has received information from its shareholders Kirov Lipman, Anna Lipman and Philip Lipman that, taking into account the agreement concluded on April 10 with the Financial Capital and Market Commission (FCMC), a mandatory share repurchase offer has been prepared, which will be expressed by 31 August 2019.

The mandatory share repurchase offer will not be lower than the price calculated on the basis of the data of the consolidated report of “Grindeks” for 2017 approved by the shareholders’ meeting, dividing the net assets of the target company by the number of issued shares.

The FCMC has imposed a fine of 131,250 euros on the shareholders of Kirov Lipman and Filip Lipman for violating the Financial Instruments Market Law and has agreed with the shareholders on making a mandatory share repurchase offer by the end of August this year.

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As part of the administrative case, the FCMC found that Kirov and Filips Lipmani had not fulfilled their legal obligation to make a mandatory share repurchase offer addressed to the other shareholders of “Grindeks”. Taking into account the violation established by the FCMC, the commission agreed with both shareholders on concluding an administrative agreement, providing for a fine of 131,250 euros.

With the conclusion of the administrative agreement, Lipmani also undertakes to make a mandatory share repurchase offer by the end of August 2019. The term of several months has been determined taking into account the need to find financial resources for the mandatory share repurchase offer.

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The administrative agreement also stipulates that the price per share in the mandatory share repurchase offer may not be lower than the price calculated on the basis of Grindeka’s 2017 consolidated report approved by the shareholders’ meeting, dividing the target company’s net assets by the number of issued shares.

The FCMC will monitor whether both shareholders fulfill all the obligations specified in the agreement within the terms and to the extent specified in the administrative agreement.