N.B.

AS Olainfarm shares are being delisted from the NASDAQ Riga Stock Exchange.

A mandatory share buy-back is currently taking place.

The price of one share has been set at EUR 9.26.

The mandatory share buy-back will end on December 7, 2021.

In accordance with the decision made by the majority of shareholders at the Extraordinary Meeting of AS Olainfarm shareholders that took place on 14 October 2021, AS Olainfarm shares are being delisted from the regulated market and the company’s shares will no longer be traded on the NASDAQ Riga Stock Exchange.

In order to provide AS Olainfarm shareholders with the opportunity to receive fair value for their shares, the mandatory buy-back of AS Olainfarm shares is currently taking place. In accordance with the Financial Instrument Market Law, the price per share in the mandatory share buy-back has been set at EUR 9.26.

To exercise your rights to take part in the mandatory AS Olainfarm share buy-back, you should conduct the custodian of your securities and submit an order to sell your shares. You can find out how many shares you own from the custodian of your securities.

Please note that the mandatory share buy-back will end on December 7, 2021. After this date no more orders from shareholders to sell shares as part of the mandatory share buy-back will be accepted.

The mandatory share buy-back is taking place in accordance with the provisions of the Republic of Latvia’s Financial Instrument Market Law and is being overseen by the Financial and Capital Market Commission.

How to apply yourself?

Frequently asked questions

Why is the share buy-back taking place?
The share buy-back is taking place, because at the AS Olainfarm shareholders’ meeting on 14.10.2021 the majority of shareholders voted IN FAVOUR of delisting the company from the stock exchange.
Where can I find out how many shares I own and the sum that I’ll receive for the shares?
You can find out information about how many shares you own from the custodian of your shares, that is, from your bank or the brokerage firm with which you have an open securities’ account.
To ascertain the sum of money that you can receive for your shares, multiply the number of shares you own by the price of one share: EUR 9.26. For example, if you have 200 shares in your securities’ account, 200 x 9.26 = EUR 1,852. So the sum you will receive from the sale of this number of shares is EUR 1,852, deducting the bank commission, which is usually less than EUR 10.
I participated in the privatisation of AS Olainfarm and bought shares with privatisation certificates, but I have lost the documents. Can I take part in the share buy-back?
If you have lost the documents confirming your purchase of shares with privatisation certificates, you should contact the Nasdaq CSD Depository, Vaļņu Street 1, Riga (phone: +37167212431), where you will be able to find out how many AS Olainfarm shares you own, and then submit a share de-registration application to your bank and take part in the share buy-back.
How is the price of one share set?
The share buy-back price is set in accordance with the methods stipulated in legislation. The highest price is approved as the share buy-back price. The setting of the price is overseen by the Financial and Capital Market Commission (FCMC). The set AS Olainfarm share buy-back price is EUR 9.26 per share.
Will the share buy-back price remain constant?
The share buy-back price will remain unchanged until the end of the share buy-back period and will remain constant for all shareholders, that is, EUR 9.26 per share.
When is the share buy-back going to take place?
The share buy-back will take place from 08.11.2021 until 16.00 on 07.12.2021.
Where should I turn if I need help selling my shares?
If you have any questions about the mandatory share buy-back or need help selling your shares, we recommend contacting your bank or brokerage firm by calling its information hotline.
Why am I being offered the chance to sell my shares?
The law that regulates the trading of shares on the stock exchange stipulates that it is mandatory for shareholders, who voted in favour of delisting a company’s shares from the stock exchange to buy back shares from these shareholders, who were opposed to this or did not participate in making the decision to leave the stock exchange.
What should I do if I don’t have a securities’ account, but I have owned AS Olainfarm shares dating back to the privatisation era?
In this case, you should contact the bank with which you have a current account or where, for example, you receive a salary, pension or support payments, and open a securities’ account. Then you will have to transfer your AS Olainfarm shares to your securities’ account. This operation will be conducted by the bank at your request, submitting a share de-registration application. As soon as the share are transferred to your securities’ account, you will be able to take part in the share buy-back.
What will happen if I don’t sell my shares?
All shareholders who do not sell their shares will continue to be AS Olainfarm shareholders. However, when the company’s shares are delisted from the stock exchange, selling or buying them will be much more complicated. Shareholders will have to find a buyer for the shares they own. They will also have to reach an agreement on the price of the transaction and the price per individual share. In addition, for each transaction they will have to conclude a contract, and the shares will have to be registered by a bank or by the company’s board. It should also be noted that costs related to drawing up the contract and executing the transaction will have to be covered by shareholders themselves.
Is the share buy-back taking place legally? Could I be defrauded or lose money?
The share buy-back is regulated by legislation. Permission to conduct the share buy-back is given by the Financial and Capital Market Commission (FCMC) https://www.fktk.lv/jaunumi/pazinojumi-medijiem/fktk-atlauj-as-ab-city-izteikt-as-olainfarm-obligato-akciju-atpirksanas-piedavajumu-2/. Before granting permission, the FCMC will verify that the party proposing the buy-back has sufficient funds to conduct the buy-back. In this particular case, the party proposing the buy-back AS AB CITY has deposited funds in the bank in the amount of almost EUR 70 million, which can only be used for the share buy-back. The FCMC will oversee the buy-back process. All payments for shares will only be conducted with the intermediation of the bank with which you have an account, as well as the Central Securities’ Depository. This process is absolutely secure.
What will happen to the share price after the buy-back?
When the company’s shares are delisted from the stock exchange, the share price will be set by mutual agreement by the buyer and seller. Usually share prices on the stock exchange are higher than on the unregulated market outside the stock exchange, because buyers are a lot less interested in shares which are not quoted on the market.
What do I have to do to sell shares?
You will find information on how to sell shares in the following section of the page: “How to conduct a transaction”.