Shares of the Estonian clothing retailer “Baltika” have lost half their value in recent days, as investors try to sell before the company leaves the stock exchange, “Delfi Ärileht” reports.
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The company’s shares have seen a sharp decline since Monday, as the holder of the largest block of shares has announced that the company plans to delist and that the shares will be bought back at a price of 0.08 euros per unit. “Baltika” has stores in all three Baltic countries and they distribute clothes under the brands “Monton”, “Baltman”, “Mosaic”, “Bastion” and “Ivo Nikkolo”.
The sixth largest shareholder of “Baltika” Tarmo Koivs called the offer ridiculous. “No, this price cannot be accepted, because such a low price has never been seen before,” he told the “Delfi Ärileht” portal.
The investor is right, since the company’s launch on the stock exchange in 2005, the price has never dropped below 0.08 euros per unit.
“They could make a decent takeover bid that would help support the image of the company going forward. If they’re going to do this to over 2,600 small shareholders, it’s very sad and I don’t think it’s going to be good for the company going forward,” Coive added.
The announcement significantly dented the value of the company’s shares, with investors scrambling to sell shares at a higher price than the larger shareholder is offering.
The large shareholder owns 90.2% of “Baltika” shares, while the rest belong to small shareholders. “Baltika” also announced that it has signed a merger agreement with the largest shareholder “KJK BLTK Holding OÜ”.
On Monday, the small shareholders of “Baltika” owned almost 5.3 million shares.
The shareholders’ meeting will be held on July 27.
2023-06-28 08:37:11
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