(Alliance News) - Malin Corp PLC on Wednesday said one of its founders Crow Rock Capital Ltd has withdrawn its legal claim against the company and surrendered its A shares to Malin.
Back in October, Malin said it had received and rejected a notice to convert A shares into a 6.2% stake of ordinary shares. Conversion notice was received 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 claimed 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.
Following this, the founders initiated court proceedings against Malin at the Irish High Court, claiming an entitlement to the conversion of their A shares.
On Wednesday, Malin confirmed that one of the founders Crow Rock Capital, which holds 787,032 A shares, has withdrawn its claim against Malin and surrendered its shares to the company.
Malin added that it continues to reject the conversion notice, "on the basis that no change of control has occurred and the conversion rights carried by A ordinary shares are not currently exercisable".
"The board will take all necessary steps to vigorously defend the company and shareholders against the remaining founders' claims in the proceedings," Malin Corp said.
Malin shares were untraded at EUR4.99 each in Dublin on Wednesday around midday.
By Sophie Rose; sophierose@alliancenews.com
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