Ukrainian Ovostar announces squeeze-out, trading on stock exchange halted

MOSCOW. Aug 21 (Interfax) - The majority owners of Ukraine's Ovostar agricultural holding, who have concentrated more than 95% of the shares, announced a squeeze-out of remaining minority shareholders holding 217,039 or 3.617% of shares at a price of PLN 70 or about $18.2 per share on Wednesday.

Ukrainian media reported, quoting a statement by the broker for the squeeze-out, Ipopema Securities, that the squeeze-out itself was scheduled for August 26. The Warsaw Stock Exchange said trading in the company's shares had been halted.

The buyers are Prime One Capital, owned by the Ovostar majority shareholders, namely CEO Boris Belikov and member of the board of directors Vitaly Veresenko, and Fairfax Financial Holding's Allied World National Assurance.

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 this yesr, 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 has recently been quoted at PLN 68.4 ($17.3) per share on the WSE. The price fell 1.4% immediately following approval of the squeeze-out.