Information on the decision to allow AS “AB CITY” to make a mandatory AS “Olainfarm” share repurchase offer

11.08.2021
  • Section:
On 14.07.2021, the Financial and Capital Market Commission (FCMC) 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. In accordance with Section 185 (1) of the Administrative Procedure Law submission of an application to a court for the setting aside of an administrative act or revocation or invalidation thereof shall suspend the operation of the administrative act from the day the court receives the application.

In the view of the FCMC, the full suspension of exercise of the rights arising from the appealed FCMC’s decision is disproportionate and inappropriate to the factual situation from the viewpoint, for instance, of those “Olainfarm” minority shareholders who chose to accept the offer. There should be therefore the possibility of reaching an interim solution in the course of proceedings to fairly adjust the situation until receiving the final judgement of the court.

In the light of this, the FCMC has submitted to the court a request for the application of temporary legal protection measure, providing that the appealed decision is partially resumed and allowing “AB City” to continue and complete the ongoing mandatory share buy-back procedure for the minority shareholders of “Olainfarm” who will choose to use the offer provided by the appealed decision. The FCMC’s request has been accepted and will be examined on 24.08.2021. The FCMC will provide further information related to the mandatory buy-back offer for AS “Olainfarm” shares made by AS “AB CITY”.

The FCMC carries out the capital market supervision in accordance with the national regulatory framework, which precisely specifies the duties of the supervisor and participants of capital market, as well as actions to be taken, including in relation to making a mandatory share repurchase offer.

Contacts


Address:
Kungu iela 1, Riga, LV-1050
Phone:
6 7774800
E-mail:
To report on unauthorised firms
Data protection

Follow the news


Subscribe to the news and receive important industry-related information in your e-mail