LSE-listed specialty alloy producer Afarak Group has resolved to not appoint a new board of directors, following a request by shareholders, who hold a collective 11.09% of shares, to dismiss the company’s board.
The shareholders’ request, submitted in August, followed after the Finnish Financial Supervisory Authority (FFSA) said Afarak main shareholder and COO Danko Koncar, and entities controlled by him, acted together with Hino Resources, Finaline Business and Koncar’s spouse to exercise control in Afarak.
The FFSA had ordered Koncar to pay a £40-million fine, as well as a supplementary amount of £10-million, that had accrued from noncompliance to buy out Afarak shares.
However, the fine is not yet legally valid, since Koncar appealed the authority’s decision to the Helsinki Administrative Court.
The shareholders sought the appointment of a new board, independent from Koncar.
Larger shareholders had, however, already indicated their intention to vote against the request, which was discussed at a recent extraordinary general meeting.
Meanwhile, Afarak has launched a voluntary share buyback, which it expects to complete by the end of March 2019, and is offering shareholders about €1.02 a share.
It plans to buy back up to €28.4-million worth of shares.