Allegations of corporate raiding in pharma sector

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Signe Baldere-Sildedze, a guardian for Anna Maligina, the youngest daughter of former pharmaceutical company Olainfarm owner Valerijs Maligins, and Maligins' other daughter, Nika Saveljeva have turned to the authorities asking that a criminal process be started over a corporate raid on the company, fraud and abuse of office, reportes the LETA newswire.

Persons with questionable reputation and criminal records in Latvia have, in a way that is not legal, become managers of Olainfarm, and these persons do not even try to deny that they can use bribery to influence courts and investigative authorities, Baldere-Sildedze and Saveljeva said in a statement for the media. They believe that the purpose of Olainfarm takeover is to strip the company of its assets and sell it to a third party, for a price that is much lower than the company's market price.

Baldere-Siladedze and Saveljeva fear that Olainfarm and the company's shareholders may suffer major losses as a result of the new management's actions. According to the Commercial Law, Olainfarm's management and supervisory boards will be held responsible if that happens.

Therefore Baldere-Siladedze and Saveljeva want the authorities to open a criminal case over the ongoing corporate raid on Olainfarm.

As reported, Olainfarm shareholders last week replaced the company’s supervisory board and elected lawyer Pavels Rebenoks as chairman of the new supervisory board.

At the shareholders’ meeting it was decided to remove chairman Ivars Kalvins, his deputy Milana Belevica and Ivars Godmanis from the Olainfarm supervisory board. They were replaced on the Olainfarm supervisory board with Pavels Rebenoks, Irina Maligina, Martins Kriekis, Daina Sirlaka and Signe Baldere-Sildedze.

Replacements were made also on the company’s management board. Lauris Macijevskis was removed from the Olainfarm management board and replaced with SEB Banka manager Inga Krukle.

As reported, Olainfarm pharmaceutical group posted EUR 5.78 million in net profit for the first six months of this year, which is a 1 percent rise from the respective period last year, according to the unaudited consolidated income statement the company submitted to the Nasdaq Riga stock exchange.

The group’s net turnover in the first half of this year reached EUR 61.8 million, down 1 percent from the respective period last year.

In the first half of the year, the Group’s sales volumes continued to increase in all of its major markets, with the exception of Russia and Kazakhstan, which recorded a 5 percent drop. The significant increase in sales volumes (+26 percent) was achieved in Belarus. In Uzbekistan, sales increased by 38 percent, the growth was also noted in Latvia and Ukraine. The company's main sales markets in the first half of the year remained unchanged.

Olainfarm makes medicines, food supplements, active pharmaceutical ingredients and chemical substances. Olainfarm shares are quoted on the Main List of the Nasdaq Riga stock exchange.

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