On 21 February, FINFSA fined Danko Koncar, obliged it bid for Afarak.

  • FINFSA obliged Danko Koncar to launch takeover bid for Afarak Group Plc shares.

Alleged Violation

  • FINFSA considered Koncar acted in concert with Hino Resources Co. Ltd, Finaline
    Business Limited and his spouse Jelena Manojlovic, to exercise control in Afarak.
  • Violated provision of the Securities Markets Act protecting minority shareholders.
  • Voting rights of persons acting in concert have exceeded bid obligation threshold.
  • Conduct was long-standing, systematic, investors unaware, voting rights 41.56%.

Fine Imposed

  • Imposed running conditional fine to enforce the obligations stated in the decision.
  • Imposed running conditional fine, decision not yet legally binding, right of appeal.
  • Bid consideration at least the highest price paid by the party under the obligation
    during six months preceding obligation, minimum share price for bid to be €2.50.

Effectiveness

  • Koncar must publish mandatory bid, within month of service of FIN-FSA decision.
  • Not yet served with decision as required by law and the period is not yet running.

Nasdaq Notice

  • On 22 February, Nasdaq issued notice, Afarak shares moved to observation segment.