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EBRD statement on BorsodChem
The European Bank for Reconstruction and Development (EBRD) owns 8.61 per cent of BorsodChem. The EBRD has supported the company’s restructuring and expansion since its privatisation in March 1996. During this period, BorsodChem has grown into a leading central European chemical company and generated significant value for all shareholders in the process.
Milford Holdings, which recently became the company’s largest shareholder, has proposed a number of agenda items for discussion and decision at the upcoming Extraordinary General Meeting of the Shareholders of BorsodChem (EGM), called for 24 November. Milford Holdings’ failure to clarify its beneficial owners and its intentions makes it difficult for BorsodChem shareholders to make informed decisions on several of the proposed agenda items.
The EBRD will closely follow the situation over the coming days and weeks. The Bank will vote its shares at the EGM in a way that best protects the interests of the company’s shareholders as a whole.
The EBRD is particularly concerned that the rights of minority investors be fully protected. The EBRD is confident that the Hungarian regulatory authorities will remain vigilant and ensure there are no violations of the minority shareholders’ statutory rights.
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