The Warsaw Stock Exchange accuses the Kernel group of violating the rules applicable to listed companies. However, the Ukrainian oligarch, who wants to take over the holding, was counting on the loss of his reputation.
- The statement of the independent Committee for Corporate Governance of the Warsaw Stock Exchange shows that Kernel Holding violated the Principles of the Regulations of Good Practices of listed companies.
- However, everything indicates that the Ukrainian oligarch Andriy Verevsky knew what he was doing, and the criticism will not discourage him from taking further steps to take over the company.
Actions for the chosen ones
In the opinion of the WSE committee, the company, by carrying out a new share issue in August 2023, violated the principles of the capital market and the fundamental rights of shareholders, including the right to equal treatment – we read on stockwatch.pl. The issue of shares served the interests of only one shareholder, contradicting the principles of a public company, existing as a community of interests of separate groups of its owners, including minority shareholders.
The above-mentioned shares could only be purchased by qualified investors with capital of EUR 500,000.
Such practices of companies listed on the WSE are strongly opposed by the Committee and cannot, under any circumstances, be accepted by the Committee – we read in the committee’s announcement.
The kernel is losing its reputation
The share issue took place when Verevsky already held the majority of shares in the company he founded. The shares were valued below the then stock exchange price and everything indicates that the oligarch bought them himself, through his other company, Namsen Limited. The oligarch was already in conflict with minority shareholders in Poland and Western Europe, who opposed Verevsky’s attempts to withdraw the holding company from the Warsaw Stock Exchange and take it into ownership.
However, the ruling of the corporate governance committee will not have any legal consequences for Verevsky’s company, notes the Ukrainian Latifundist. Yes, the Kernel holding lost its reputation on the stock exchange and in the financial world, but the oligarch had to take this risk into account. And since he wants to be the sole owner of the company anyway, he probably doesn’t care much.
The company is still on the stock exchange
However, the opinion of the WSE committee may be taken into account when considering the dispute with Kernel’s minority shareholders and Verevsky’s request to withdraw Kernel from the Warsaw Stock Exchange. The oligarch expected that he would be able to say goodbye to the Warsaw Stock Exchange in January 2024 at the latest. It looks like he’ll have to wait some more.
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