The possible delisting of the shares of the pharmaceutical company JSC “Olainfarm” does not cause any concerns about the company’s further development plans, Jānis Buks, Chairman of the Board and Juris Bundulis, Chairman of the Council, commented to LETA, commenting on the planned October 14 shareholders’ meeting.
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“I don’t know anything more about that. However, the shareholders have the right to raise any issue at the shareholders’ meeting,” Bundulis said.
He admitted that he had previously heard talk of such a possibility at the rumor level, but he did not pay attention to the rumors. The possibility of delisting shares without raising concerns about the company’s development.
“We have very clear business development plans and we are thinking about them,” Bundulis said.
Buks also expressed a similar opinion. “We have a plan, we know where we need to go, what we need to do. We are working on a new strategic development vision for 2022-2027 to just move forward,” Buck said.
It has already been reported that Olainfarm shareholders will decide on the delisting of the company’s shares in mid-October, the company said in a statement to Nasdaq Riga. The company’s extraordinary shareholders’ meeting was convened on October 14 at 11 am.
The issue of exclusion of Olainfarm shares from the regulated market and other issues are included in the agenda at the request of the shareholder SIA Olmafarm, which represents 42.56% of the share capital of Olainfarm.
The Board of Olainfarm draws the shareholders’ attention to the fact that a shareholder who has voted in favor of this issue may have legal consequences, ie an obligation to make a mandatory share repurchase offer in accordance with the Financial Instruments Market Law.
Meanwhile, the parent company of the health group Repharm AS AB City, taking into account the planned decision of the Olainfarm shareholders’ meeting to delist the shares from the Nasdaq Riga stock exchange, has placed a share purchase order on the stock exchange for 9.26 euros, which will be maintained until the mandatory share repurchase will begin.
The announcement to the stock exchange states that AB City controls 48.1% of Olainfarm’s voting rights, and in accordance with the Financial Instruments Market Law, a mandatory share repurchase must be performed before the shares are excluded from a regulated market.
According to AB City’s calculations, the share repurchase price will be 9.26 euros per share.
Olainfarm manufactures finished dosage forms, pharmaceuticals and food supplements, as well as chemicals and active pharmaceutical ingredients. The largest shareholder of Olainfarm is Olmafarm (42.56%), which is equally owned by the heirs of Valery Maligin – Irina Maligina, Anna Emilia Maligina and Nika Saveljeva.
However, the FCMC Council allowed AB City to make a mandatory offer to repurchase Olainfarm shares, as AB City had acquired the voting rights arising from Olainfarm shares, which accounted for 30.85% of the total number of voting shares, on the basis of indirect participation. AB City increased its shareholding in Olainfarm to 48.1% in the mandatory share repurchase offer and the additional announced share sale option.
The turnover of the Olainfarm Group last year was 122.157 million euros, which is 11% less than in 2019, while the group’s profit decreased 2.3 times and was 9.478 million euros.
Olainfarm shares are listed on the official list of Nasdaq Riga.
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