The Czech investment company Black Duck Invest has now fulfilled the obligations included in the share sale and purchase agreement with JSC Olmafarm and has transferred the purchase fee of 42.5% of JSC Olainfarm shares – 30 million euros – to the bank’s current account in accordance with the terms of the agreement, the representative of the company, Vogte Kachina.
In accordance with the laws and regulations in force in the Republic of Latvia, Black Duck Invest sent a notification to the Capital and Financial Markets Committee on October 6 of this year regarding the acquisition of a significant stake in JSC Olainfarm.
This means that Black Duck Invest has acquired all rights in and rights arising from the shares purchased, including voting rights at the JSC Olainfarm Shareholders’ Meeting.
Cain said in a press release that although the agreement stipulated that the shares would be transferred first and then settled accordingly, the investment firm decided to make the transfer for a number of reasons.
“We are making this transfer now for two reasons. First of all, we want to make it clear that Black Duck Invest has all the necessary financial resources at its disposal to pay for the purchase agreement and then make all the necessary investments in the development of Olainfarm. Second, the actions we are seeing from the Olmafarm and Repharm subsidiaries It currently shows that the other party is not waiting for a final court ruling on the validity of the contract and has taken steps to make the proceedings irrevocable in the event of an unfavorable ruling.”, asserts Kačena.
This was also confirmed by lawyer Martić Kvips, who indicated that efforts are currently being made to change the position of Olainfarm’s shares, which may make the implementation of the agreement impossible in the future.
The current actions by Olmafarm, Olinfarm and Repharm show that they will not wait for the judgment of the Czech court. We are confident that the judgment will be in favor of Black Duck Invest but it will be negative for the other party, which is why steps are currently being taken to change the stock position. If this is done, but the court’s decision is in favor of Black Duck Invest, the terms of the agreement will no longer be enforceable,” Kvēps explains.
Regarding the change in the state of shares, Kvēps cites an example that JSC “Olainfarm” is studying the possibility of stopping the listing of shares on the stock exchange, as well as the company’s management processes and legal decision-making procedures.
The listing of shares on the stock exchange provides transparency of transactions and decisions, as they must be reported in accordance with stock exchange regulations. On the other hand, if the shares are not listed on a stock exchange, they can change owners relatively more easily. Among other things, minority shareholders are limited in their ability to obtain an overview of the company’s governance and to gain confidence that the majority shareholder is acting in good faith without harming the company and the interests of the minority shareholders.”
It has already been announced that the Czech international investment group BHM Group plans to invest 50-100 million euros in Olainfarm as part of its “buy, build and develop” development strategy. While Repharm announced at the end of September that it was “actively seeking additional capital and investors.”
“BHM Group and, accordingly, Black Duck Invest are fully equipped with both shares and, if necessary, we can quickly raise bank funds to successfully develop a company like Olainfarm,” Kačena said.
In addition, Kashin noted that BHM Group intends to enhance long-term cooperation with other companies in the group, to build strong and large synergies groups, and to provide added value over several generations.
In April of this year, Black Duck Invest signed an agreement with Olmafarm to purchase 42.5% of the shares of JSC Olainfarm. Although the contract was legitimately signed and can be demonstrated by the timestamp of the electronic signature and an extract from the notary’s record in the Czech Republic, the new Olmafarm board of directors refused to fulfill its part of the contract. On the contrary, false information about BHM Group’s Black Duck Invest company is made public and, in dubious circumstances, criminal action is taken, discrediting and harming international investors.
Black Duck Invest is part of the Czech international investment company BHM Group. Prague-based BHM Group invests in a variety of innovative companies and projects across Europe. At the moment, the Group’s equity is more than 600 million euros, it is represented in more than 20 countries, has more than 30 active investment projects, and the total value of assets is more than 1 billion euros. The group employs more than 1,500 people, according to the group.
BHM Group invests in a variety of industries, including medicine, pharmaceuticals, renewable energy, real estate, innovative technologies, etc.
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