Malin Corp PLC - Dublin-based investor in life sciences companies - Receives and rejects a notice to convert A shares into a 6.2% stake of ordinary shares, while also dismissing an accompanying threat of litigation. Says conversion notice is received on Thursday from its founders, who are members of a Brandon Point Industries group company. The conversion notice was for 2.9 million A shares, 88% of the 3.3 million issued to the founders.
Malin said the founders claim that the EUR68.1 million sale of Malin's 65% stake in Altan Pharma, completed at the start of this month, constitutes a change of control event, allowing the conversion. At the same time, the founders say they will start court proceedings against Malin to prevent any capital returns to ordinary shareholders until the A shares are converted. Malin had announced a capital return via a tender offer following the Altan disposal.
"The company considers the submission of the conversion notices and the subsequent threat of litigation to be spurious," Malin says on Friday. Chair Liam Daniel comments: "The original intent of the A ordinary shares was to align the interests of investors and the founders and reward the founders for exceptional value creation. The founders did not create value. Although the A ordinary shares also carry conversion rights in the event of a change of control, no such event has occurred."
Current stock price: EUR6.90
Year-to-date change: up 68%
By Tom Waite; thomaslwaite@alliancenews.com
Copyright 2021 Alliance News Limited. All Rights Reserved.