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COURT ORDERS TSARUKYAN TO PAY 14.8 MILLION AMD TO GERMAN INVESTOR
Kristine Aghalaryan
http://hetq.am/eng/news/24877/court-orders-tsarukyan-to-pay-148-million-amd-to-german-investor.html
18:17, March 27, 2013
A Yerevan court order Gagik Tsarukyan's "Yerevan Ararat
Brandy-Wine-Vodka Factory" (YABWV) to pay Stefan Laxhuber, the CEO of
the German investment firm "Ostinvestor", 14.8 million AMD ($36,662)
in compensation in a case that dates back to 2009.
Laxhuber, the CEO of the German investment firm "Ostinvestor", has
sued Tsarukyan for swindling his company out of shares it purchased
in the "Yerevan Ararat Brandy-Wine-Vodka Factory" (YABWV).
Hetq covered the legal case in a July 20, 2009 article entitled "German
Firm Loses Shares in Armenian Company Owned by Gagik Tsarukyan".
In May, 2006, the German company "Ostinvestor" purchased 1,520 shares
of the "Yerevan Ararat Brandy-Wine-Vodka Factory" (YABWV). This
amounts to 3.2% of Ararat's outstanding shares.
At a special October 12, 2008, stockholders' meeting it was decided
to consolidate the shares of YABWV by issuing one new share for each
2363.5 held at a valuation of 18,908,000 Armenian drams* (approximately
45.212 Euros.)
Before the consolidation of YABWV shares, there were 124 stockholders.
Some 82% were held by Gagik Tsarukyan, 10% by "MultiGroup" and about 7%
by remaining stockholders. "Ostinvestor" held 3.2%.
Given that "Ostinvestor" only held 1,520 shares and one new share
was to be the equivalent of 2,363.5 shares, the German firm wasn't
able to secure even one share of the new stock issue.
As a result of the share consolidation, "Ostinvestor" and the other
minor shareholders wound up with fractional shares. This means that
these shares were to be sold back to the major holders.
During the special YABWV meeting, a formula for the resale of these
fractional shares was worked out. The firm of "En-Audit" pegged the
market value of one full share at approximately 69 Euros.
"Ostinvestor", however, had spent 184 Euros per share and thus wound
up paying 279.680 Euros for its original 1,520 shares.
Taking into account that "Ostinvestor" owned 1,520 shares before the
consolidation, the amount accruing from the fractional shares buyback
equals 27.467 Euros.
The German company refused to sell its shares at 69 Euros per.
"This is just about 20 % of the price of the last trades and our
purchase price. Furthermore, the company has done significantly well
since then. And less than 2% of the real market value. With this step
MultiGroup intentionally tries to deprive minor shareholders of their
owner rights, obviously breaking the Constitution and Legislation of
Republic of Armenia," argued the "Ostinvestor" CEO.
In yesterday's decision, the court refused the plaintiff's demand
that the original 1,520 shares be restored to Ostinvestor
The German firm's lawyer, Davit Danielyan, argued that the court had
no right to set a fixed cash amount as compensation and that defining
such a price is a matter for the compulsory stage of the case.
"All we asked is for the court to oblige Yerevan Brandy to pay
compensation of equal value. We made no financial demand," said
Danielyan.
The court also obligated Ostinvestor to pay some 2.8 million AMD in
court fees and professional services.
Danielyan says they will file a suit with the Court of Appeals.
Kristine Aghalaryan
http://hetq.am/eng/news/24877/court-orders-tsarukyan-to-pay-148-million-amd-to-german-investor.html
18:17, March 27, 2013
A Yerevan court order Gagik Tsarukyan's "Yerevan Ararat
Brandy-Wine-Vodka Factory" (YABWV) to pay Stefan Laxhuber, the CEO of
the German investment firm "Ostinvestor", 14.8 million AMD ($36,662)
in compensation in a case that dates back to 2009.
Laxhuber, the CEO of the German investment firm "Ostinvestor", has
sued Tsarukyan for swindling his company out of shares it purchased
in the "Yerevan Ararat Brandy-Wine-Vodka Factory" (YABWV).
Hetq covered the legal case in a July 20, 2009 article entitled "German
Firm Loses Shares in Armenian Company Owned by Gagik Tsarukyan".
In May, 2006, the German company "Ostinvestor" purchased 1,520 shares
of the "Yerevan Ararat Brandy-Wine-Vodka Factory" (YABWV). This
amounts to 3.2% of Ararat's outstanding shares.
At a special October 12, 2008, stockholders' meeting it was decided
to consolidate the shares of YABWV by issuing one new share for each
2363.5 held at a valuation of 18,908,000 Armenian drams* (approximately
45.212 Euros.)
Before the consolidation of YABWV shares, there were 124 stockholders.
Some 82% were held by Gagik Tsarukyan, 10% by "MultiGroup" and about 7%
by remaining stockholders. "Ostinvestor" held 3.2%.
Given that "Ostinvestor" only held 1,520 shares and one new share
was to be the equivalent of 2,363.5 shares, the German firm wasn't
able to secure even one share of the new stock issue.
As a result of the share consolidation, "Ostinvestor" and the other
minor shareholders wound up with fractional shares. This means that
these shares were to be sold back to the major holders.
During the special YABWV meeting, a formula for the resale of these
fractional shares was worked out. The firm of "En-Audit" pegged the
market value of one full share at approximately 69 Euros.
"Ostinvestor", however, had spent 184 Euros per share and thus wound
up paying 279.680 Euros for its original 1,520 shares.
Taking into account that "Ostinvestor" owned 1,520 shares before the
consolidation, the amount accruing from the fractional shares buyback
equals 27.467 Euros.
The German company refused to sell its shares at 69 Euros per.
"This is just about 20 % of the price of the last trades and our
purchase price. Furthermore, the company has done significantly well
since then. And less than 2% of the real market value. With this step
MultiGroup intentionally tries to deprive minor shareholders of their
owner rights, obviously breaking the Constitution and Legislation of
Republic of Armenia," argued the "Ostinvestor" CEO.
In yesterday's decision, the court refused the plaintiff's demand
that the original 1,520 shares be restored to Ostinvestor
The German firm's lawyer, Davit Danielyan, argued that the court had
no right to set a fixed cash amount as compensation and that defining
such a price is a matter for the compulsory stage of the case.
"All we asked is for the court to oblige Yerevan Brandy to pay
compensation of equal value. We made no financial demand," said
Danielyan.
The court also obligated Ostinvestor to pay some 2.8 million AMD in
court fees and professional services.
Danielyan says they will file a suit with the Court of Appeals.