On Tuesday, August 17, the mandatory buy back of JSC Olainfarm shares concluded. Within the repurchase process, the minority shareholders have sold a total of 2,427,408 shares to the Repharm group’s parent company AB City. The mentioned shares represent17.23% of the total number of Olainfarm shares with voting rights, and for these shares the minority shareholders will receive EUR 22.477 million in total.
“The mandatory share repurchase process has concluded successfully. The considerable interest of minority shareholders proves that the offer made by AB City was considered really advantageous by investors. Therefore, being aware of attempts to delay this share repurchase, we have prepared an additional opportunity for shareholders, who have declined to sell their Olainfarm shares due to the ambiguity of the process and the overdue clarification from the Financial and Capital Market Commission (FCMC),” comments AB City Chairman of the Board Sergejs Korņijenko.
AB City has decided to announce tomorrow an offerto purchase JSC Olainfarm shares on the stock exchange for another five business days at the same price of EUR 9.26, which was determined within the completed mandatory share repurchase offer in accordance with the method specified in the Financial Instrument Market Law. For this purpose, AB City has has secured financing in the amount of over EUR 65 million.
At the conclusion of the compulsory share buyback, AB City has acquired 48.08% of JSC Olainfarm voting rights. “This transaction serves as a turning point towards an increased focus in investments in the development of Olainfarm. Contrary to the previous practice, when the priority of Olainfarm was to prioritize distribution of profits in dividends, we plan to invest in expanding “Olainfarm” product portfolio and entering new markets,” explains AB City Chairman of the Board Sergejs Korņijenko, emphasizing that, Repharm group as a Baltic health-care leader and strategic investor is planning the long-term development of JSC Olainfarm, by setting ambitious goals not only for the company itself, but for the entire pharmaceutical industry in Latvia.