Bank of Lithuania approved take-over bid circulars from UAB Ignitis grupė
The Supervision Service of the Bank of Lithuania approved a take-over bid circular submitted by UAB Ignitis grupė for the redemption of ordinary registered shares of the group’s undertakings, AB Energijos skirstymo operatorius and AB Ignitis gamyba, with the aim of delisting of shares from the trading on the stock exchange lists of AB NASDAQ Vilnius.
“UAB Ignitis grupė came to a common agreement with the minority shareholders, their rights were guaranteed and there were no longer any obstacles to the approval of the circulars. Such a decision by the company should be considered as a good practice, since the delisting of shares from the trading on the stock exchange would deprive shareholders of the opportunity to trade them freely. Now it is important how this agreement will be implemented, which we will monitor closely,” said Vaidas Cibas, Head of the Regulated Market Supervision Division of the Bank of Lithuania.
The price of one ordinary registered share of AB Energijos skirstymo operatorius will be €0.880, while for a share of AB Ignitis gamyba – €0.640.
UAB Ignitis grupė undertook to pay compensation, equal to the dividends for 2019, to the minority shareholders who, by the time of the take-over bid, will have sold their shares to the offeror. In addition, UAB Ignitis grupė and minority shareholders agreed that the shareholders of AB Energijos skirstymo operatorius and UAB Ignitis grupė who sold their shares to the offeror will be given priority to acquire new shares of AB Ignitis grupė during the initial public offering.
The take-over bid will have to be initiated on the fourth business day after the date of the Bank of Lithuania decision to approve the take-over bid circular, and will be valid for 20 calendar days. Then UAB Ignitis grupė intends to redeem the company’s remaining shares on a mandatory basis (squeeze-out procedure), after which UAB Ignitis grupė should remain the sole shareholder, while AB Energijos skirstymo operatorius and AB Ignitis gamyba would be removed from the stock exchange lists of AB NASDAQ Vilnius.
While examining the documents of the take-over bid circular and the justification for the pricing of shares, the Bank of Lithuania took into consideration the arguments of all parties concerned and consulted the National Energy Regulatory Council.