VILNIUS - Majority shareholders of companies listed on Vilnius' stock exchange may implement a squeeze-out right starting Jan. 1, enabling them to demand that minority shareholders in possession of small holdings sell out.
The proposal to amend the law on securities with the addition of a squeeze-out right - which is widespread in European countries - was raised by several companies, including Denmark's DFDS, owner of Lisco Baltic Service, Lithuania's only ferry company.
DFDS, in fact, may be among the first companies to require that minority shareholders sell their stock. The Danish company currently owns 92.35 percent of Lisco Baltic Service's outstanding shares.
Russia's Eurochem concern, owner of the Kedainiai-based fertilizer producer Lifosa, may also exercise the right.
The amended law on securities market stipulates that a shareholder in possession of 95 percent of a listed company or a group of shareholders in control of such a stake may require the minority shareholders to sell their securities and offer then a fair price.
Those minority shareholders who go along with the requirement will have three-months to sell their shares. For those who don't, money payable will be placed on a deposit account according with prescribed procedures.