JSC “Repharm” parent company JSC “AB City” has announced its readiness to continue purchasing the JSC “Olainfarm” shares owned by minority shareholders also after the end of the period of the mandatory tender offer for JSC “Olainfarm” shares, expiring on 17 August.

“With this commitment we wish to dispel any potential uncertainty in relation to “Olainfarm”, and manifest our long-term intentions. We have has secured financing in the amount of 90 million EUR for this transactions,” the Chairman of the Management Board of JSC “AB City” Sergejs Korņijenko explains.

On 21 July 2021, two minority shareholders of JSC “Olainfarm” – A. Auce and M. Judzis – who together own a negligible part of the shares forming paid share capital of JSC “Olainfarm”, filed a court case to challenge the permission of the Financial and Capital Market Commission (FCMC) granted to JSC “AB City” to announce mandatory repurchase offer for JSC “Olainfarm” shares. The same two JSC “Olainfarm” shareholders have wrongfully disseminated information about suspension of the mandatory repurchase offer for JSC “Olainfarm” shares, which should end on 17 August 2021. Even though A. Auce and M. Judzis have not provided any reasonable justification to challenge the FCMC’s decision and there is no related court ruling, JSC “AB City” assumes that such activities may have caused considerable confusion among JSC “Olainfarm” shareholders.

To help shareholders of AS “Olainfarm” to avoid losses caused by unclarity in the share repurchase process also after 17 August and sell their shares at a premium of EUR 9.26 per share instead of the lower or stock exchange price, JSC “AB City” will ask for FCMC’s explanation of the most optimal model of action.

However, JSC “AB City” would like to point out that when the application submitted by A. Auce and M. Judzis is declared unfounded and their request to suspend the FCMC decision is rejected, all shareholders who have not been able to sell their shares at the price set in the mandatory repurchase offer and thus suffered losses, will be entitled to bring proceedings against A. Auce and M. Judzis.

The Chairman of the Management Board of JSC “AB City” Sergejs Korņijenko reveals that after the successful transaction the main focus will be on investments in JSC “Olainfarm” company development. “Contrary to the previous practice, when the priority of “Olainfarm” was to prioritise distribution of profits in dividends, “Repharm” group as a Baltic health-care leader with a long-term strategy, and plans to invest in expanding “Olainfarm” product portfolio and entering new markets,” S. Korņijenko says.

If, as a result of this share repurchase, JSC “Repharm” acquires more than 50% shares, JSC “Repharm” will fulfil its obligation to apply to the Competition Council for approval of the transaction in full knowledge of and respect for applicable competition regulations.