JSC “AB City” appreciates the efforts of the Financial and Capital Market Commission (FCMC) to protect minority shareholders of JSC “Olainfarm”, who wish to use the mandatory share repurchase bid. While FCMC is attempting to settle the situation, the minority shareholders will in any case be provided with an opportunity to sell their shares at a premium of EUR 9.26 per share as defined in the mandatory bid, because JSC “AB City” has confirmed its readiness to purchase the shares of JSC “Olainfarm” owned by minority shareholders also beyond 17 August– the end for the period of the mandatory share repurchase bid.

“We take into consideration that there will be attempts to delay the process of share repurchasing, because “Black Duck Invest” declared publicly this intention immediately after the repurchase bid was authorised, and other attempts cannot be excluded. Therefore, we have acted to reduce any uncertainty in this process. We, “AB City”, have committed to purchase shares of minority shareholders and are ready to do that in the form of direct transactions. “AB City” has secured financing in the amount of 90 million EUR for the transactions with minority shareholders,” the Chairman of the Management Board of JSC “AB City” Sergejs Korņijenko informed.

“By asking the Administrative Court to permit “AB City” to continue and complete the share repurchase procedure, FCMC has attempted to normalise the situation, where individual players led by inconceivable motives and using loopholes in the law try to derail the strictly regulated process defined in the law – the mandatory share repurchase bid,” the Chairman of the Management Board of JSC “AB City” Sergejs Korņijenko comments.

JSC “AB City” shares FCMC’s opinion that it is disproportionate and not in line with the actual situation to delay a mandatory share repurchase bid only because someone contested the FCMC’s decision in court. JSC “AB City” is of the same opinion with FCMC that it should be possible to reach a temporary solution even during the litigation to fairly settle the situation until the final court decision is available. However, it is even more important to find long-term systemic solutions to nip in the bud the possibilities to wrongfully manipulate with the mandatory share repurchase procedure.

JSC “AB City” expresses its readiness to cooperate with FCMC and other institutions to systemically improve the regulation for transactions involving shares in the future and to reduce unclarity and different interpretations.

Additional information:
Rihards Mors
Attorney at Law
JSC “AB City” authorized representative regarding repurchase of JSC “Olainfarm” shares
Mob. phone: 29133955
E-mail: rihards.mors@rmlegal.lv