The Supreme Court Finally Confirmed Darnitsa’s Title to Shares of the Borshchahivskiy Chemical-Pharmaceutical Plant and Lawfulness of Their Acquisition18 November 2020
On October 29, 2020, the Supreme Court sustained the cassation appeal of Darnitsa Pharmaceutical Company and cancelled the decision of the Northern Commercial Court of Appeal of Kyiv dated August 25, 2020 in respect of purchasing by Darnitsa in 2015 of the shares of the Research and Production Center “Borshchahivskiy Chemical-Pharmaceutical Plant” in the course of privatization of municipal property.
The Supreme Court also upheld the decision of the Commercial Court of Kyiv dated November 4, 2019 establishing that the shares had been sold to Darnitsa in compliance with the law. Previously, the Supreme Court also confirmed the lawfulness of decisions of the Antimonopoly Committee of Ukraine on granting Darnitsa the authorization to concentration through purchasing said shares of the Borshchahivskiy CPP.
The Supreme Court reasoned its decision, inter alia, with the fact that the disputed auction and the exchange-traded contract concluded by Darnitsa did not violate the rights or interests of the Borshchahivskiy Chemical-Pharmaceutical Plant. In 2019, the Supreme Court already dismissed similar claims of minority shareholders of the Borshchahivskiy CPP for the same reason, some of which shareholders are members of the company's management. The decision of the Supreme Court in this case is final and without appeal.
As known, on March 20, 2015, Darnitsa purchased a block of 3,100 shares, which amounts to 29.95% of the charter capital of the Research and Production Center “Borshchahivskiy Chemical-Pharmaceutical Plant”, from the Department of Municipal Property of Kyiv during the exchange auction.
Darnitsa Pharmaceutical Company was established in 1930. Since 1998 it has become the leader in Ukraine by volume of production of medicinal products. Strategic areas of the portfolio development include cardiology, neurology and pain management. The company’s beneficiaries are the Zagoriy family.
“Borshchahivskiy CPP” RDC PJSC is among TOP-20 largest pharmaceutical manufacturers of Ukraine. It is a member of the Manufacturers of Medications of Ukraine Association (AVLU). The enterprise has a balanced product portfolio: medicines (more than 100 products), products for veterinary medicine, dietary / food supplements (BADS), disinfectants.