Danko Koncar obliged to bid for Afarak - watchdog

By Kitco News / February 22, 2018 / www.kitco.com / Article Link

Feb 22 (Reuters) - Finland's Financial Supervisory Authority said on Thursday it had obliged Croatian investor Danko Koncar to launch a takeover bid for the Finnish metal producer Afarak .

* Koncar, Afarak's chief operating officer, is supposed to publish a bid within a month from the decision

* Koncar is the general director of investing company Kermas Limited, which became Afarak's biggest shareholder in 2009-2014

* According to the watchdog, Koncar cooperated with investors such as Hino Resources Co. Ltd and Finaline Business Limited to gain control of Afarak

* The watchdog says the bid must be at least 2.50 euros per share

* In case the obligation is not fulfilled, Koncar is obliged to pay a fine of 40 million euros and a supplementary amount of 10 million euros for each consecutive month

* Kermas will be appealing to the decision, Afarak says

* Afarak, previously known as Ruukki Group, is in the process of being delisted from Nasdaq Helsinki Stock Exchange

* Shares in Afarak rise 16 percent by 1423 GMT


(Reporting by Boleslaw Lasocki, editing by Jussi Rosendahl and Adrian Croft)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

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