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FCMC has entered into an administrative agreement with AS "Grindeks" shareholders, applying a fine and agreeing on mandatory share buyout offer

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12.04.2019

Press Release 

FCMC has entered into an administrative agreement with AS "Grindeks" shareholders, applying a fine and agreeing on mandatory share buyout offer 

The Financial and Capital Market Commission (FCMC) has imposed a fine of 131 250 euro on the shareholders of AS "Grindeks" Kirovs Lipmans and Filips Lipmans for a breach of the Law on the Financial Instruments Market (the Law) and agreed with the shareholders on making a mandatory share buyout offer by the end of August this year.

 

Within the administrative case the FCMC found out that Kirovs Lipmans and Filips Lipmans had not fulfilled the obligation laid down in Article 66 of the Law, i.e. to make the mandatory share buyout offer to other shareholders of AS "Grindeks". Considering the infringement identified the FCMC agreed with Kirovs Lipmans and Filips Lipmans on signing the administrative agreement, applying the fine of 131 250 euro to both shareholders. 

 

Under the administrative agreement Kirovs Lipmans and Filips Lipmans have committed to make the mandatory share buyout offer by the end of August 2019. A period of several months has been set taking into account the need to find financial means for making the mandatory share buyout offer. According to the administrative agreement the price of a share in the mandatory share buyout may not be lower than the price calculated on the basis of the data of the consolidated annual report for 2017 of AS “Grindeks” approved at the shareholders meeting, dividing net assets of the target company by the number of the shares issued.

 

The FCMC will monitor whether Kirovs Lipmans and Filips Lipmans fulfil the contractual commitments within the relevant period and to the appropriate extent.

 

Further information:

Communications Division 

Financial and Capital Market Commission 

Phone: +371 67774808, +371 67774807

dace.jansone@fktk.lv, ieva.upleja@fktk.lv