Olainfarm is a leading manufacturer in the chemical and pharmaceutical sector of the Baltic States that exports to more than 60 countries and employs more than 1,000 people, making it a major player in the Latvian economy. On July 16 a mandatory share buyback offer was published on the company website.
On 14.07.2021, the FKTK decided to allow AS “AB CITY” to make a mandatory buy-back offer for AS “Olainfarm” shares, however, the decision was appealed to the Administrative Regional Court.
"Given the urgency of the situation and taking into account the issues arising regarding the impact of the application on the course of mandatory share buy-back offer, the FKTK had submitted a request to the court for the application of temporary legal protection measure[s], since in the FKTK’s view the full restriction on the exercise of the rights arising from the appealed FKTK’s decision would be disproportionate and inappropriate to the factual situation. The FKTK requested that the court consider this request as a matter of urgency until 17 August 2021, the deadline for the mandatory share buy-back offer.
The FKTK also said that the offer by AS “AB CITY” was made on 16.07.2021 publishing a statement in the official gazette “Latvijas Vēstnesis” https://www.vestnesis.lv/op/2021/135.AD1, while the application to the court was made before making the mandatory share buy-back offer, on 20.07.2021.
"In view of above and the possibility of interpretation of the current legal provisions a correct and fair settlement of the matter is solely within the jurisdiction of the court, which will be binding on the FKTK and other parties involved in the mandatory buy-back offer for AS “Olainfarm” shares. Having assessed the situation within the scope of its competence, the FKTK does not currently see any grounds for raising objections to the completion of the mandatory share buy-back offer with those minority shareholders of AS “Olainfarm”, who have so far responded or will choose to apply until 17.08.2021 to the mandatory share buy-back offer made by AS “AB CITY”," the FKTK said.
"The FKTK calls on the court to examine the requests made as early as possible and adopt a decision to that effect," it concluded.
