At the meeting of shareholders of JSC “Ukrainian Power Machines” (formerly JSC “Turboatom”) did not approve the decision to merge JSC “Electrotyazhmash”.

The merger of "Turboatom" and "Electrotyazhmash" is postponed

This is reported by the railway magazine Railway Supply.

The grounds for refusal are the ruling of the Economic Court of the Kharkiv region dated September 21, 2021.

They are prohibited from approving at an extraordinary meeting of Turboatom shareholders the deed of transfer of Electrotyazhmash’s merger, the merger agreement, explanations of the terms of the agreement, the conditions for converting and issuing shares for converting Electrotyazhmash’s shares into Turboatom’s shares.

The plaintiff in this case is Svarog Asset Management. It acts on its own behalf, but at the expense of the assets of PZNVIF “Sjomy”, which owns 64 million 817 thousand 590 shares of “Turboatom”.

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The company demanded that the agreement on the merger of Electrotyazhmash JSC was declared invalid, since the determination of the market value of the shares was carried out in violation of legislative norms. “The right to demand a mandatory redemption of shares not later than 10 business days after the date of the general meeting of shareholders was not announced.

The defendant did not exercise the obligatory right to repurchase the shares from the plaintiff in the manner and on time, ”the court ruling says.

Let us remind you that an extraordinary meeting of shareholders of Turboatom was already held in August, within the framework of which the issue of joining Electrotyazhmash to Turboatom was already considered. It was proposed to change the name “Turboatom” to JSC “Ukrainian Power Machines”.

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