Today, 3 November, the Repharm Group’s parent company AS AB City has received permission from the Financial and Capital Market Commission (FCMC) to go ahead and make a mandatory AS Olainfarm share buy-back offer.
AB City has been authorised to make the mandatory share buy-back offer by shareholders, who voted in favour of delisting AS Olainfarm shares from the regulated market at AS Olainfarm’s Extraordinary General Meeting on 14 October 2021. In such cases, the law requires a mandatory share buy-back offer to be made.
The offer was made to ensure that minority shareholders have an opportunity to sell their shares for their fair value. The share buyback is being conducted in accordance with the provisions of the Republic of Latvia’s Financial Instrument Market Law, and is being overseen by the FCMC. Pursuant to the Financial Instrument Market Law, the price of one share in AS Olainfarm has been set at EUR 9.26.
Minority shareholders will be able to sell their shares after the publication of the corresponding notification in the Latvijas Vēstnesis newspaper during the next few days. AB City will distribute a separate announcement about the start and end dates of the mandatory share buy-back period.
As previously reported, in preparation for a situation in which, as a result of the buy-back of AS Olainfarm shares, AB City’s voting rights will exceed 50% of the total number of AS Olainfarm shares with voting rights, AB City submitted a merger notification to the Competition Council.
In accordance with the currently effective legislation, a merger notification is due if voting rights of AB City in AS Olainfarm arising from shareholding, exceed 50% of the total number of AS Olainfarm shares with voting rights.