The Financial and Capital Market Commission (FCMC) has received an application from the Repharm group company AS AB City to make a mandatory offer to repurchase the shares of the pharmaceutical manufacturer Olainfarm, according to the information published by the FCMC.
According to the information provided in the prospectus, the repurchase price of one share is 9.26 euros.
It is envisaged that the mandatory share repurchase offer can be accepted within 30 days from the moment of its expression, which will start on the next business day after the offer is published in the official publication “Latvijas Vēstnesis”.
According to the information provided in the prospectus, AB City indirectly owns 30.85% of Olainfarm shares.
It has already been reported that Repharm announced on June 21 this year that it would ask the FCMC for permission to make a mandatory share repurchase offer to Olainfarm shareholders, as the Repharm Group has acquired a significant stake in Olainfarm’s capital.
Repharm Group has informed Nasdaq Riga of an agreement with Olainfarm shareholder Nick Saveļjeva on the acquisition of 7.8% of voting rights in Olainfarm by exercising these rights through Repharm’s parent company AB City. Repharm also announced in February this year an agreement with Anna Emilija Maligins on the acquisition of the right to purchase 21.97% of Olainfarm shares and the acquisition of voting rights by exercising these rights through Repharm’s subsidiary SIA Farma Fund.
The Riga Pharmaceutical Factory, which is part of the Repharm Group, directly owns 1.07% of Olainfarm shares.
If Repharm acquires more than 50% of the shares in the mandatory share repurchase offer, Repharm will fulfill its obligation to apply to the Competition Council for approval of the transaction.
The holding company AB City was registered in 2018, its share capital is 126,536,960 euros, according to Firmas.lv information. The real beneficiaries of the company are not indicated, but the co-owners of Repharm Andrejs Leibovičs, Jānis Oskerko and Aleksandrs Livšics work in the company’s council. In turn, the board of AB City includes the co-owner of Repharm Roberts Tavjevs and Sergejs Korņijenko.
At the same time, the Czech company Black Duck Invest claims to have become the largest shareholder in Olainfarm, but police are investigating suspicions that the deal is in fact a fraud and have detained at least three people in the case.
In a statement to the media, Black Duck Invest previously stated that Olainfarm had illegally taken control of Repharm and that Black Duck Invest would continue to defend its rights in Latvian and Czech courts in order to execute the acquisition of Olainfarm shares with Olmafarm.
www.farmacija-mic.lv
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