Can one really lose ownership if the purchase price has not been paid? The redeemer has failed to pay the payment that was the basis for the redemption in its entirety.
It is wrong to say that the redeemer has “failed to pay”. The redeemer must pay the redemption price after the redemption price is legally binding. Ownership transfers when the redeemer has provided security, and that was done in 2021. A decision should be made by early autumn.
Supreme Court rules on Ahlstrom case, redemption price rises to 21.0 euros per share: Supreme Court ruling: Ahlstroms lost the Helsinki Stock Exchange’s controversial Ahlstrom dispute | Kauppalehti
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Here is the Supreme Court’s decision
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“The target company’s significantly improved profitability before the arbitration proceedings commenced in March 2021 could not have been reflected in the share’s market price, also because the target company had, through its communication, given an image of its earnings development that was significantly more pessimistic than the actual situation.”
Is it really appropriate for the board to act in this manner? Of course, this was the view of the party that won the proceedings.
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This new redemption price of €21.00/share with interest will naturally be received by those less than 10% of shareholders who did not accept the tender offer in either the primary or subsequent offer, but will the difference of €21.00 - €17.84, i.e., €3.16/share, also be paid to those who sold their shares to the buyer consortium in either the primary or subsequent offer for €17.84/share?
Good question. Purmo’s redemption price was raised by an arbitration court’s decision. Did everyone receive that increase, or only those who were part of the redemption process?
Of course, only those who underwent the redemption process; others have accepted the 17.84 price themselves, so there’s nothing to dispute.
Thanks for the confirmation, I suspected that was the case. I had to check my sales, as I recalled having quite a lot of this stock myself. Apparently, I had sold the entire lot on 5.11.2020 in the closing auction, as the stock fetched €18.42/share then, when someone had a huge one-off buy order at that price. Otherwise, the stock price had been hovering below €18 during the same day and also in the following days. At that time, it crossed my mind whether that closing auction trade was used to secure the crossing of the 90% threshold (although, of course, the buyer had to be someone other than the consortium itself).
Today, Nordnet received a 21€ redemption price and about 2.2€ interest per share. But shouldn’t there be late payment interest for several years?
Default interest only started accruing on 1.1.2023 when the reference rate turned positive. Currently, the reference rate is 2.5%, and that much annual interest accrued. At its highest, the annual interest accrued was 4.5%.
Reference rate confirmed under the Interest Act
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Well, I was already dreaming about late payment interest on top of the reference rate. Thanks for the answer.
When did the 3.0% reference rate start to be paid in redemption procedures?
A new law came into force on January 31, 2023
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Compulsory Redemption of Shares | Wist | hashtag#negotiator 363. Finnish case law on share redemptions is pushing new boundaries. Tarja Wist discusses the Supreme Court’s decisions. The value of a share can be negative, a “golf share” (KKO:2020:99), and the fair value of the minority’s redemption price can significantly increase from the tender offer (KKO:2025:94) “Ahlstrom-Munksjö”