Slovak deputies back bill on squeeze-out of minority owners
The Slovak parliament backed a bill allowing majority owners of traded companies to enforce a buy out of minority shareholders.
The legislation passed today in Bratislava, Slovakia, requires minority owners to sell their shares to a majority shareholder holding at least a 95% stake in the company, should he ask for it. This right of majority shareholders will be enforceable in courts.
The Finance Ministry has said the measure reflects the concentration of ownership in Slovak companies into hands of single majority investors, which has caused turnover at the Bratislava stock exchange to decline. The squeeze-out will allow them to work more efficiently by cutting costs on calling shareholders meetings and meeting other legal requirements, the ministry said.
The change will allow foreign investors such as Mol Nyrt, which holds more than 98% in the refiner Slovnaft AS, to gain full ownership of their Slovak units. The bill must still be signed by the president. (Bloomberg)
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.