Is the Repharma shadow looming over the heirs of Olainfarm?

  • 2020-09-18
  • Kristine Stalidzane

Kas Jauns Avīze
More and more signs indicate that Nika Saveļjeva, the middle daughter of the deceased Valērijs Maligins, most likely has acted against the testament left by her father which bans the sale of “Olainfarm” shares for five years after his death.

Similarly, observing the openly extravagant lifestyle of the eldest daughter Irina Maligina, a reasonable question arises whether Irina has not traded her inherited “Olainfarm” shares to a large pharmaceutical chain, contrary to her father's last will.

Minority shareholders are raising the alarm

On 9 September, Guna Stahovska, a member of the Board of the Association of Investors and Minority Shareholders, filed a petition with the Financial and Capital Market Commission regarding the acquisition of a hidden influence in “Olainfarm” and violations of the Financial Instruments Market Law.

Described in the application, which has become available to Kas Jauns Avīze, are several observations by the Association, facts, consequent conclusions and a request to check whether the businessman Andrejs Leibovičs together  with his associates have not acquired hidden control over a significant part of "Olainfarm".

The association points to a publicly available copy of the document on the Internet, which is reminiscent of a power of attorney in which one of Maligins' heirs, his middle daughter Saveļjeva, may have authorized Andrejs Leibovičs.

If we believe what is written in the document, Leibovičs has been authorized to manage all the shares of “Olmafarm” LLC (which owns 42% of “Olainfarm” shares) owned by Saveļjeva, with all the rights that have been granted by law to Saveļjeva as a member of the LLC. If such a power of attorney has indeed been issued, it is still valid, because, according to the information published in Latvijas Vēstnesis, Saveļjeva has not revoked any power of attorney since 29 May last year. Last year, Saveļjeva revoked all powers of attorney issued before 29 May, but the possible power of attorney to Leibovičs was allegedly issued a day later.

Footprints lead to "RePharm"

It is very possible that Leibovičs mentioned in the application is the same person who is the real beneficiary in the joint stock company "RePharm". It is the central company that controls the largest pharmaceutical wholesaler in Latvia "Recipe Plus", the largest pharmacy chain "SentorFarm" (works with the brand "Mēness Aptiekas"), the chain of medical institutions the Association of Health Centers, the Central Laboratory and the Riga Pharmaceutical Factory.

The credibility of the document is given by the fact that Riga Pharmaceutical Factory is a small shareholder of Olainfarm, which had authorized not one but seven representatives for the company;s shareholders' meeting on 24 January. This indirectly proves that the Riga Pharmaceutical Factory at this meeting (which did not take place due to a quorum) was not an ordinary shareholder participating in the meeting, but, in communication with its true beneficiaries, tried to use the hidden influence to gain control over “Olainfarm”.

Police continue the investigation

The letter of the Association states: "According to the information of individual shareholders of JSC “Olainfarm”, who were represented at the shareholders' meeting that did not take place on 24 January, 2020, the same group, using secretly acquired control over a large part of JSC “Olainfarm” (significant participation in the interpretation of the Financial Instrument Market Law), forged and submitted to the Register of Enterprises of the Republic of Latvia documents of a forged shareholders' meeting. By the decision of Zemgale District Court of 20 April, 2020 in Case No. 73291820, this false shareholders' meeting organized by the hidden group with significant control over JSC "Olainfarm" was declared illegal and its decisions invalid."

An application has been submitted to the State Police regarding the initiation of criminal proceedings against the persons involved regarding the fact of forgery of this "Olainfarm" shareholders' meeting. Police are currently investigating.

The actions of this group of persons with the aim to expand the hidden participation and gain control over “Olainfarm” significantly violate the rights of minority shareholders, systematically and grossly violate the provisions of the Financial Instrument Market Law on acquisition of a qualifying holding and are likely to be classified as an illegal seizure or raiding, the association points out.

Manipulation with the stock price

The letter also states that, despite the fact that “Olainfarm” achieved record profits in 2019, publications appear in the press (especially in the newspaper "Diena" in recent months) about the alleged management problems of the company and the impending insolvency. Minority shareholders have a reasonable suspicion that these publications in “Diena” were organized for the purpose of market manipulation, in order to undermine the confidence of neutral investors and investors interested in profit in “Olainfarm” by lowering the share price, in order to seize control of the company as quickly and cheaply as possible for the benefit of one group.

It is also suspected that there are group manipulations organized in the financial markets to reduce the value of “Olainfarm” shares, which is a serious crime, qualifying under Article 192 (3) of the Criminal Code.

A summer full of joy

There is no direct information whether Maligins' eldest daughter Irina Maligina has authorized Andrejs Leibovičs or persons related to him to use the shares owned by her. Given that the mentioned gentleman is interested in "Olainfarm", it is likely that the investigation will reveal that Irina has been approached and, most likely, has followed a similar path as her sister Nika Saveļjeva.

The past year has seen Irina's openly wasteful lifestyle, possibly covered by a fee for the opportunity to represent her property rights. She has been having fun together with her infamous consultants – the lawyer Pāvels Rebenoks and the criminally convicted and imprisoned lawyer Mārtiņš Krieķis, who this year bought both a new sports car "Porsche 911", as well as motorcycles and horses and spent the summer in expensive entertainment in Latvia and abroad.

The suspicions that Irina Maligina is being used in the takeover scheme of property and “Olainfarm” shares are reinforced by the fact that she – a young lady without children – in Jūrmala family court is trying to take away the custody rights for Valērijs Maligins' youngest daughter Anna Emilija Maligina from her mother Signe Baldere-Sildedze who, judging from public statements, opposes the transfer of “Olainfarm” to “RePharm” at a significantly reduced price.

A player from Ukraine

The fact that "Olainfarm" is a delicious mouthful is evidenced by the appearance of another player on the horizon. Ukrainian pharmaceutical company "ZDOROVYE" LTD was also interested in Olainfarm shares, unsuccessfully addressing Baldere-Sildedze through a Russian businessman already living in Riga. Of course, it is Eduards Janakovs who allegedly represents the capital of Russian politician Aleksandrs Šiškins and has been looking for ways how “Olainfarm” could work with “ZDOROVYE” to explore new markets.

A closer look reveals that “ZDOROVYE” supposed subsidiary “Zdorovie Europe” was registered on 13 June, 2019 and that Yegor Dorovsky, Oļeg Koguta and Leonid Ogorodnikov have been identified as the true beneficiaries.

Also the shadow of Šķēle

However, on 29 June this year, the members of “Zdorovie Europe” and the real beneficiaries also changed. Namely, the real beneficiary was Uldis Arnicāns, who lives in Monaco, and who is associated with the representation of the interests of former Prime Minister Andris Sķēle in business circles. Less than a month later, another change took place in the same company, and Gvido Endlers, the regional manager of the quick loan company "4finance", became a member of the board.

As of 20 February, 2018, Edgars Dupats, the son-in-law of Andris Šķēle, is among the real beneficiaries of "4finance". It is also estimated in the corridors that Arnicāns also has a unifying connection with Leibovičs, both gentlemen have the same legal assistants. For example, Pēteris Rubenis, who was the liquidator of Arnicāns' "UG-70" LLC and was also on the board of "Olmafarm".

A question arises whether Irina Maligina's desire to become the guardian of Anna Emīlija Maligina's part of the inheritance is not really an action in the interests of others and an attempt to influence the management of the minor heiress, which in the long term could lead to the exploitation of Irina's own part of the inheritance.