Drug producer Biofarm Bucharest yesterday confirmed the existence of the litigation involving the State Assets Resolution Authority (AVAS) and US-based International Pharmaceutical Group (IPG), the winner of the company''s privatisation contract. This was after ZF reported in its yesterday" issue that the state had obtained Biofarm''s privatisation contract annulment by a court ruling.
The shares of the company were suspended from trading on the Bucharest Stock Exchange yesterday so that investors can be equally informed, and will resume trading tomorrow.
Biofarm specified it was not a party in this litigation and was not subpoenaed in this case.
The Biofarm officials also added that the American company, a party in the litigation with the state had the same number of shares at the moment as those bought from the Romanian state nine years ago.
The 3.6 million shares bough by the American company from the state accounted for 40% in Biofarm at the time of privatisation. Meanwhile, after Biofarm concluded four capital increases that also entailed distribution of bonus shares, the stake came to account for approximately 1%. The stake is worth 670,000 euros on the Bucharest Stock Exchange at the moment.
"The number of shares in Biofarm with which International Pharmaceutical Group is registered in the Shareholder Registry is the same as stipulated in the buy-sell contract signed between the State Ownership Fund and Shapiro LLC (International Pharmaceutical Group)," specified Biofarm in its release to the Bucharest Stock Exchange.
"The number of shares is as revealed, because this is the number stipulated in the privatisation contract. This is my opinion," Dan Vasile, Biofarm chairman, told ZIARUL FINANCIAR.
In other words, since the completion of the privatisation, the American company sold 39% in Biofarm but retained the same number of shares. On the other hand, according to AVAS officials, the Bucharest Court of Law at the end of last month ordered the retroactive termination of the buy-sell contract, with the parties being returned to their positions before the contract was signed.
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