Since last week, the shareholders of the former Authorized Investment Company M1 have the option to repurchase the shares at a price of at least €2.00 per share, as secured by the VZMD, i.e at €1.10 € or 122% more than the shareholders were offered by the company when they had withdrawn the shares from the stock exchange 2 years ago, and €1.75 more – or rather 700% more – than the share price on the SI ENTER market of the Ljubljana Stock Exchange. The remaining 740 minority shareholders of the company are thus entitled to over €800,000.00 of the purchase value – which is over €440,000.00 more than they would have received if they had not agreed the withdrawal from the stock exchange. The biggest among the minority shareholders is the Slovenian State Capital Corporation “Kapitalska družba, d.d. (KAD)”, which acquired 6.81% of all M1 shares by terminating the registry accounts at the Slovenian Central Securities Clearing Corporation (KDD) of 11,300 certificate shareholders who, in this case alone, had lost at least €535,706.00 or gave them away to the state-owned KAD. The VZMD has been very vocal regarding these enormous damages suffered by the most vulnerable minority shareholders in the past several years and on all levels, as well as provided alternative legislative proposals which, however, were dismissed by the Slovenian decision-makers. In turn, the VZMD established the 'Share SUPPORT' program (VIDEO: https://youtu.be/qnNbmMa4VRQ), seven years ago which helped to at least somewhat mitigate the effects of terminating the registry accounts and of the unbridled appetite of the financial industry, as well as of the operators and trustees of the state holdings (VIDEO: https://youtu.be/PpAzfPxYiEg).
With its civil society 'Share SUPPORT' and Shareholder Agreements back in 2018 and 2019 (even before the termination of the registry accounts at the KDD), the VZMD managed to ensure significantly better terms of sale than a single shareholder could have achieved (€1.10). Despite the successful sale of the block of shares of over 600 minority shareholders at the time, the Association kept a close eye on the goings-on at the M1 company and carefully monitored, as well as initiated legal proceedings in order to review the financial settlement (of €0.90) for the M1 shares; recently, they again managed to achieve even better terms of sale of the shares which go far beyond all options and offers made thus far.
In 2021, the general meeting of the M1 shareholders – and with the biggest shareholder, COPARTNER, d.o.o. (owning 89.83% of all shares) calling all the shots – adopted the decision on delisting the shares from trading on the organized market. At the same time, the shareholders (who did not agree with decision) were offered a compensation in the amount of €0.90 per share. For this reason, the VZMD – in light of their efforts towards the interests of the shareholders included in the 'Share SUPPORT' and in the Shareholder Agreements – initiated legal proceedings in order to review the suitability of the offered financial settlement, which they are currently withdrawing from (VIDEO: https://youtu.be/dANbBOSyrfU). The shares that had been delisted from the Ljubljana Stock Exchange are rarely traded with, even on the SI ENTER market, with their most recent price of merely €0.25.
When negotiating the terms of sale, the VZMD managed to achieve the so called 'top-up clause which stipulates an additional payment if the buyer buys or sells the share at a price higher than €2.00 per share in the following 12 months. The achieved terms of sale are valid no later than the 12th of October 2023 and only for the shareholders who had joined the Shareholder Agreement with the VZMD and transferred their shares to the lawyer's trust account. Once again, it turned out that better terms of sale can be achieved by establishing a joint block of shares of minority shareholders, by negotiating with major shareholders and other prospective interested parties, and by having a suitable professional support.
Due to the above, the VZMD is once again inviting all interested shareholders to sign the Shareholder Agreement and transfer the shares to the lawyer's trust account that will be used to make a joint sale of the block of shares of the minority shareholders, and the corresponding purchase value will then be TRANSFERRED TO THE PERSONAL ACCOUNTS of each member. Any additional information for the shareholders can be obtained from the VZMD Associates every workday between 10:00 and 15:00 at the following phone numbers: +386 1 25 11 420 or +386 31 770 771, and via e-mail at This email address is being protected from spambots. You need JavaScript enabled to view it..
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