Dragon Capital Raises Concern over Additional Share Issuance at Kyivmedpreparat
Kyiv, January 18, 2007 — Investment bank Dragon Capital today issued a statement expressing concern over the ongoing share capital increase at OJSC Kyivmedpreparat.
Shareholders of Kyivmedpreparat, a leading producer of pharmaceuticals in Ukraine, approved the issuance of new shares earlier this year, scheduling a two-stage closed subscription for Dec. 3-28, 2007, with the first stage approved for Dec. 3-17.
Despite the termination of the first stage on Dec. 17, as of today Dragon Capital has yet to receive confirmation from Kyivmedpreparat that its minority shareholders, which collectively hold more than 20% of Kyivmedpreparat shares and include leading global investment funds, can execute their preemptive right to buy newly issued shares.
For its part, Dragon Capital submitted all documentation required for the subscription to Kyivmedpreparat on Dec. 5. Despite not receiving a subscription agreement from the company, Dragon Capital transferred the payment due to Kyivmedpreparat for newly issued shares on Dec. 17.
Dragon Capital would like to note that such a refusal to execute preemptive shareholder rights sets a dangerous precedent for the company and its clients.
According to the Ukrainian Stock Market Agency, the largest shareholders of Kyivmedpreparat include CJSC Omega, limited liability companies Garmonika and Ukrtekhvuhlets, and commercial bank Finance and Credit.
Finance and Credit, according to public sources, is controlled by businessman Kostyantyn Zhevago, whose iron ore mining company Ferrexpo debuted on the London Stock Exchange earlier this year.
Dragon Capital expresses hope that this issue will be properly resolved, with all Kyivmedpreparat shareholders receiving fair treatment and able to execute their preemptive rights to subscribe for company shares.
Dragon Capital is open to discuss this situation with Kyivmedpreparat management in order to avoid any misunderstanding and prevent any adverse effect on foreign investor sentiment towards the company.
For more information please contact us at [email protected].