15:00 London, 17:00 Helsinki, 10 November 2017 - Afarak Group Plc ("Afarak" or
"the Company") (LSE: AFRK, NASDAQ: AFAGR)
STATEMENT BY AFARAK GROUP
The Company is making the following statement in response to various media
reports in Finland.
* As far as the Company is aware, Afarak Group is not under any criminal
investigation. The Police have earlier confirmed this and have not
subsequently informed the company otherwise;
* The Company has given its full support and delivered documents for
shareholder-related investigations as requested by the police;
* According to media sources there is still an investigation ongoing in
relation to one of its shareholders. If requested by the authorities, the
Company will give its full support, as it has always done.
PETITIONS TO THE FINANCIAL SUPERVISORY AUTHORITY
* The Company was informed on September 19, 2017 about a petition to the FSA
by a group of shareholders. The Company is not aware of the progress of this
matter. If requested by the authorities, the Company will give its full
support to the FSA.
* In the media, allegations have been made about another request to the FSA
concerning a related party transaction. The Company has not been made aware
of such a petition, so the Company is not in a position to confirm this.
Again, if requested by the authorities, the Company will give its full
support and cooperation.
* There have been allegations in the media that the Company has not respected
its disclosure obligations in respect of a related party transaction. In May
2017, a subsidiary of the Company bought a 15 % minority shareholding in a
Company called LL Resources. The seller was the company's CEO, Guy
Konsbruck, and the total purchase price was just over EUR 227,000.00. The
reason for this transaction was that LL Resources is a business partner of
Afarak and the share ownership of the newly elected CEO could have created a
conflict of interest. Afarak has an option to sell back the said shares at
the same price if and when the term of current CEO ends. The transaction was
considered to be insignificant to the parties involved, as described in the
Rules of Helsinki Stock Exchange, section 22.214.171.124. As required, the details
of this transaction (as well as all other related party transactions) will
be published in the Group Financial Statements for the year 2017.
If the Company receives information and /or makes any formal decisions on the
matters above that, according to all relevant rules and regulations, need to be
published, the Company will act accordingly. In relation to investigations and
allegations relating to shareholders, the Company reiterates that it will not
give any comments to the media or markets. It will cooperate fully with the
authorities, if so requested.
EXTRAORDINARY SHAREHOLDERS MEETING
* As disclosed on 9(th) November 2017, a group of shareholders have requested
an extraordinary shareholders' meeting to be convened. The meeting will be
convened in accordance with the Finnish Companies act.
The Board of Directors
For additional information, please contact:
Afarak Group PlcGuy Konsbruck, CEO, +356 2122 1566, [email protected]
Jean Paul Fabri, PR Manager, +356 2122 1566, [email protected]
Financial reports and other investor information are available on the Company's
Afarak Group is a specialist alloy producer focused on delivering sustainable
growth with a Speciality Alloys business in southern Europe and a FerroAlloys
business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and
the Main Market of the London Stock Exchange (AFRK).
NASDAQ HelsinkiLondon Stock Exchange
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The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Afarak Group via GlobeNewswire
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