Mandatory buy out of Mazaikiu Nafta
Decision of the Lithuanian Court – mandatory buy out of shares of AB Mazeikiu Nafta
Today the Lithuanian Court issued a decision concerning mandatory buy-out of shares in AB Mazeikiu Nafta
The Lithuanian Court issued a decision pursuant to which the ownership title to shares in AB Mazeikiu Nafta which are owned by minority shareholders other than the Government of Lithuania shall be transferred to PKN ORLEN at the price of LTL 10.25 per share.
Once the decision of the Lithuanian Court is performed PKN Orlen and the Government of Lithuania will become the sole shareholders of AB Mazeikiu Nafta.
Also today the Lithuanian Stock Exchange upon the request of AB Mazeikiu Nafta suspended the trading in shares of the refinery which will permit effective implementation of the court’s decision.
The terms of cooperation between PKN ORLEN and the Government of Lithuania are regulated by the agreement entered into on 25 January 2007. At the first stage of the process which was completed on 21 May 2007 the shareholders of AB Mazeikiu Nafta had the right to enter into share purchase agreements with PKN ORLEN relating to the shares of AB Mazeikiu Nafta held thereby at any time convenient to them through the Lithuanian brokerage house SEB Vilniaus Bankas. The price offered per one share amounted to LTL 10.25.
Since the first stage of the process did not result in purchase of all the shares from the minority shareholders, PKN ORLEN, acting in compliance with the regulations governing mandatory share buy out under the laws of Lithuania, filed a motion with the Court in Lithuania for a decision on the basis of which all the shares owned by minority shareholders other than the Government of Lithuania will become the property of PKN ORLEN for the price of LTL 10.25 per share.
