Business news from Ukraine

Ovostar owners complete squeeze-out and announce delisting

The main owners of Ovostar agricultural holding have completed a squeeze-out, i.e. the forced purchase of 217,039 thousand or 3.617% of the remaining shares held by minority shareholders, and have concentrated 100% of the shares, and announced their intention to apply for delisting of the company’s shares from the Warsaw Stock Exchange.
According to Ovostar’s stock exchange announcement, Prime One Capital of the majority shareholders of the agricultural holding, CEO Boris Belikov and member of the Board of Directors Vitaliy Veresenko, became the owner of 66.16% of the shares following the squeeze-out, while the rest is owned by seven companies from Fairfax Financial Holding.
Ovostar Union is one of the leading producers of eggs and egg products in Ukraine. “In 2023, Ovostar increased its net profit by 7.4 times to $45 million, EBITDA by 4.5 times to $50.4 million, and revenue by 20% to $162.5 million.
In mid-June 2011, the group’s holding company, Ovostar Union N.V., conducted an IPO of 25% of its shares on the WSE at PLN62 per share ($22.78 at the then exchange rate) and raised $33.2 million.
The squeeze-out price was PLN70 per share (about $18.2).
At the end of May this year, Prime One Capital, which owned 65.93% of the shares at that time, announced that together with Fairfax Financial Holding it had accumulated 95.45% of the agricultural holding’s shares and was ready to buy out all 4.55% of the remaining minority shares. During the announced voluntary buyout at a price of PLN70 per share (about $17.5), they acquired another 56,027 shares, or 0.934%, and now own 96.383%.
Before the trading was halted on August 21, Ovostar shares were listed at PLN68.4 per share, and after the announcement of the Cypriot regulator’s approval of the squeeze-out in early August, the price dropped by 1.44%.

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