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Ignitis Group holds a trading session at Nasdaq’s New York office. Company photo
The state power plant Ignitis Group, which is preparing to implement the largest initial public offering in the Baltic States (IPO), has received a small shareholder subsidiary of Ignitis Production, Vidmantas Martikonis, which may cause former minority shareholders to lose their preventive right to participate in the IPO. Investor V commented on the reasons given.
A new second chapter was added to V. Martikonis’ arguments
The company announced via Nasdaq Vilnius that the lawsuit was received at the Vilnius Regional Court on August 3.
According to the report, the claim requires determining the correct price of a registered Ignitis production common share to be paid, which must be paid to the company V. Martikonis in order for the Ignitis production shares to be purchased from it.
It is also claimed that expert opinion is required to correctly determine the price of participation in the production of Ignitis.
It may no longer have priority
According to the Ignitis Group, this process does not affect the process of exclusion of the shares of the Ignitis Energy Distribution and Production Operator (ESO) on the Nasdaq Vilnius Stock Exchange, which will end in 2020. July 1, and the mandatory sale ongoing Ignitis production and ESO shares or the company’s preparation for the IPO.
However, due to the decision received from V. Martikonis, the company will have to reassess whether it will be possible to apply the preventive right to acquire the shares of Ignitis Group during the initial public offering to the small shareholders of ESO and Ignitis Production, who They sold their shares to the company during the initial public offering.
Ignitis grupe recalls that according to 2020 March 17 The Investors Association representing Ignitis Group and the minority shareholders of ESO and Ignitis Production had the preferential right to acquire the number of shares of Ignitis Group during the IPO, which is equal to the number of shares held by the shareholder multiplied by EUR 0.880 per share (ESO) or EUR 0.640 by share prices (Ignitis in the case of production), plus 2020. u to pay a dividend in 2019 in proportion to the number of shares it owns the shareholder. These sales prices for the production shares of ESO and Ignitis were agreed with the Bank of Lithuania.
According to the Ignitis Group, one of the terms of the agreement with the Investors Association was that the agreement would expire if a lawsuit was filed in court related to the mandatory sale price of ESO or Ignitis production shares or defense decisions. of prices.
The company will analyze the received complaint and related arguments and will report on other actions in accordance with the procedure established by the legal acts, says the Ignitis group.
Investor arguments
V. Martikonis V says that the threat from the Ignitis Group that due to its internal company can no longer give priority to investors who participated in the voluntary purchase of production shares of ESO and Ignitis to participate in the IPO is a strange punishment and a group responsibility requirement.
The Soviet Army reminds me of this, where a soldier is punished by the entire battalion for ordering repulsions. The private state company is threatened with such threats, says V. Martikonis.
photo :: 1right
He explains that he has provided this information to the Ignitis Group and will not receive information on how many Ignitis Group shares will be sold during the IPO. The information must be known before the compulsory acquisition of the production shares of ESO and Ignitis.
A voluntary purchase sold assets to ESO shares, and Ignitis output was sustained. Understand me, if you did nothing before August 17, when the remaining Ignitis production shares would be mandatorily purchased, the lawyers would lose the opportunity to request a fair price. If I don’t see what the price will be for the IPO, I must have a legal opportunity to defend, says Martikonis.
He says that if the Ignitis Group shares are going to sell for 2 euros during the IPO, the price will rise sharply and there will be a clear turnaround for small shareholders, as the group is not worth it.
If there is a price per share of 80 or 90 cents, then everything is normal and I will get it back. For stocks, adult, I value much more, but if they allow us the IPO and sell us the shares at a minimum price, what is the difference for me (arguing V), says V. Martikonis.
He stressed that the agreement between the Ignitis Group and the Investors Association was signed only by the representatives of the company and the association, and that their approval of the agreement was only tacit.
The main purpose of that dispute was not to confirm prices, but to require the withdrawal of the claim for exclusion from the list. That’s right, there was a question about the price, and the second, and I did not sign that agreement, the association chooses. How long is it valid? They do not have any validity for each shareholder to sign, says V. Martikonis.
It is also ahead of the Ignitis Group due to the process of buying shares of the ESO volunteer and production stocks of Ignitis, which was too short for the EU and hindered by a pandemic, that is. and. shareholders did not have sufficient time to participate in the procedure.
We hope to add a comment to the Investors Association
Rayti commented
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