Cyprus regulator approves Ovostar squeeze-out

MOSCOW. Aug 6 (Interfax) - The Cyprus Securities and Exchange Commission (CySEC) has approved a request by Ukrainian agricultural holding Ovostar and its main owners, who have concentrated more than 96% of the shares, to conduct a squeeze-out.

Ukrainian media reported, quoting a company filing with the Warsaw Stock Exchange, that the majority shareholders sought to concentrate all 100% of shares.

No other details about the upcoming buyout were given.

The group's holding company, Ovostar Union Public Company Limited, is registered on Cyprus.

Ovostar is a vertically integrated agribusiness that is one of Ukraine's largest producers of eggs and egg products. The group's net profit soared 640% to $45 million and EBITDA jumped 350% to $50.4 million in 2023 on revenue up 20% to $162.5 million.

The group's holding company, Ovostar Union N.V. raised $33.2 million in an IPO on the WSE in June 2011, selling 25% of its shares at PLN62 ($22.78 at the exchange rate at the time) per share.

At the end of May, the majority shareholders of Ovostar CEO Boris Belikov and board member Vitaly Veresenko, with 65.93% of shares, said that together with the Canadian Fairfax Financial Holdings, they had accumulated 95.45% of the shares of the agricultural holding and decided to buy the remaining 4.55% at a price of PLN 70 per share (about $17.5). They bought 56,027 shares or 0.934% of capital and now own 96.38%.

"The offerors intend to exercise the squeeze out right to acquire 100% of the shares of the Company at the price of PLN 70 per share," the company said at the beginning of July, recalling that it planned to delist from the stock exchange.

Ovostar is currently being quoted at PLN 68.4 ($17.3) per share on the WSE. The price fell 1.4% immediately following approval of the squeeze-out.