CLARIFICATIONS AFTER THE RELEASE OF MAY 12TH, 2023
16 Mai 2023 - 9:30AM
CLARIFICATIONS AFTER THE RELEASE OF MAY 12TH, 2023
08:30 London, 10:30 Helsinki, 16 May
2023 - Afarak Group SE ("Afarak" or "the Company")
(LSE: AFRK, NASDAQ: AFAGR)
CLARIFICATIONS AFTER THE RELEASE OF MAY 12TH,
2023
Following the release about the combination agreement signed
between AFARAK SE (“Afarak”) and LL Resources GmbH (“LLR”) on May
12, 2023, Afarak has received several questions about the
transaction. In order to have equal information in the market
rather than addressing these questions one by one, Afarak gives
further information hereafter.
In the release of May 12th, Afarak mentioned some financial
information of LLR. In addition to the published numbers of LLR,
the turnover of the LLR group in total in 2022 was EUR 566,081,000
(2021: EUR 345,834,000) and the EBITDA of the LLR Group in 2022 was
EUR 39,815,000 (2021: EUR 20,013,000) in accordance with Austrian
Local GAAP ("UGB") and EUR 38,588,000 (2021: EUR 21,425,000) in
accordance with International Financial Reporting Standards (IFRS).
These numbers are unaudited.
After the completion of the combination, there will be a total
of 407,041,814 outstanding Afarak shares instead of 267,041,814
today, hence all shareholders of Afarak will be diluted when it
comes to percentage. This obviously also applies to large
shareholders, whose percentage will be reduced, while new large
shareholders (i.e., the current shareholders of LLR) will join,
hence broadening the shareholder base of Afarak. By adding up the
combined assets and retained earnings, the equity per share is
substantially increasing, which should mitigate the aforementioned
dilution, in terms of Afarak’s share value.
None of the present large and larger shareholders of Afarak have
any relationship with the LLR group. It is however mentioned for
clarity that the CEO of Afarak, Guy Konsbruck, owning approximately
one (1) % of the shares in Afarak, owns indirectly 15 % of the
shares of LLR. Due to his conflict of interest, Guy Konsbruck has
not taken part in any negotiations or decision making from Afarak’s
side in relation to the transaction.
During the past several years, there has been a continuously
growing and close cooperation between both groups. In that period,
Afarak learned a lot about the mutual businesses and discovered
many synergy effects, while experiencing very few conflicts of
interest. Both companies are convinced that combining the two
businesses will bring serious benefit to both groups. For Afarak in
particular, a broadening and diversification of the shareholder
base and the creation of new sustainable recycling-based revenue
streams, closely related to our present field of operation, seemed
to be a very desirable effect of this transaction. LLR group will
join with a wide base of experienced and competent staff, who will
support the rejuvenation of our management and further enhance the
future growth of the company.
Afarak is working on a prospectus that will contain all material
information about the transaction and the related parties. This
prospectus will be made available in the autumn of 2023.
The transaction will be presented in the AGM that will be held
on June 21st, 2023. The invitation for the AGM will follow within
the next two (2) weeks.
Helsinki, May 16, 2023
AFARAK GROUP SE
Board of Directors
For additional information, please contact:
Afarak Group SE
Guy Konsbruck, CEO, +356 2122
1566, guy.konsbruck@afarak.com
Financial reports and other investor information are available
on the Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on
delivering sustainable growth with a Speciality Alloys business in
southern Europe and a FerroAlloys business in South
Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the
Main Market of the London Stock Exchange (AFRK).
Distribution:NASDAQ HelsinkiLondon Stock ExchangeMain
media
www.afarak.com
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