Repharm Group’s parent company acquires 50.93% stake in pharmaceutical manufacturer Olainfarm / Article

The total number of voting shares in Olainfarm is 14,085,078.

The announcement to the stock exchange states that AB City directly controls 2,829,349 shares or 20.09%, but indirectly – 4,344,869 shares or 30.84%.

Of which AB City controls 27.89% of the shares, Repharm’s subsidiary SIA Farma Fund controls 21.97% and Repharm’s subsidiary JSC Rīgas farmaceitiskā fabrika controls 1.07% Olainfarm shares.

It has already been reported that the mandatory offer to repurchase the shares of the pharmaceutical company Olainfarm, made by the parent company of the Repharm group AB AB, will start on November 8, according to the announcement published in the official publication Latvijas Vēstnesis.

The price of one share in the mandatory share repurchase offer is set at 9.26 euros.

The mandatory share repurchase offer will be accepted within 30 days – until December 7, 2021 at 4 p.m.

The results of the offer will be announced by December 14, 2021, and the shares will be settled by that date.

Representatives of Olainfarm informed that every shareholder has the right to sell his / her Olainfarm shares within the framework of mandatory share repurchase. In order to exercise his right to participate in the mandatory repurchase of Olainfarm shares, the shareholder must apply to his / her security holder to submit an order to sell the shares within the mandatory repurchase offer of Olainfarm shares. The number of shares held can be ascertained from the security holder.

The mandatory share repurchase will end on December 7, and after this date no shareholder order to sell the shares in the mandatory share repurchase will be accepted.

With the exit of Olainfarm, the shares of the listed company will no longer be available for purchase or sale on the stock exchange at the current stock exchange price. If a shareholder wishes to sell his / her Olainfarm shares in the future, the buyer will have to find the buyer and agree on the share price individually.

It has already been reported that on November 2 this year, the Financial and Capital Market Commission (FCMC) allowed AB City to make a mandatory offer to repurchase Olainfarm shares. This decision was made because the shareholders of Olainfarm decided at the extraordinary meeting on October 14 to exclude the shares of Olainfarm from the regulated market.

AB City is authorized to make a mandatory share repurchase offer on behalf of the shareholders who voted in favor of the exclusion of Olainfarm shares from the regulated market at the extraordinary shareholders’ meeting. These shareholders are Nika Saveļjeva, who directly owns 8.98% of Olainfarm shares, Anna Emīlija Maligina, who directly owns 8.97% of Olainfarm shares, AS Rīgas farmaceitiskā fabrika, which owns 1.07% ” Olainfarm and the Estonian company Olfim, which owns 8.97% of Olainfarm.

The prospectus of the share repurchase offer states that at the beginning of the share repurchase offer, AB City had acquired the voting rights arising from 6,928,179 Olainfarm shares, representing 49.19% of the number of Olainfarm voting shares, on the basis of direct and indirect participation.

It was also reported that on October 14, Olainfarm shareholders decided to delist the company’s shares from the stock exchange. The issue of exclusion of Olainfarm shares from the regulated market was included in the agenda of the extraordinary general meeting of shareholders at the request of the shareholder SIA Olmafarm, which represents 42.56% of the share capital of Olainfarm.

It was also reported that the FCMC also allowed AB City to make a mandatory offer to repurchase Olainfarm shares on July 14 this year. In the mandatory share repurchase offer and the subsequent additional share sale option, AB City increased its holding in Olainfarm to 48.1%.

The Olainfarm Group’s turnover last year was 122.157 million euros, which is 11% less than in 2019, while the group’s profit decreased 2.3 times to 9.478 million euros.

Olainfarm manufactures finished dosage forms, pharmaceuticals and food supplements, as well as chemicals and active pharmaceutical ingredients. Ollainfarm’s largest shareholder is Olmafarm (42.56%), which is owned in equal shares by Valeria Maligina’s heirs – Irina Maligina, Anna Emilia Maligina and Nika Saveljeva. Olainfarm shares are listed on the official list of Nasdaq Riga.

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