Investment The redemption case of Ahlstrom-Munksjö is progressing to the district court

Both Ahlstrom-Munksjö’s majority owners, minority owners and the trustee appealed the arbitration award.

Fiber company The dispute over the redemption of Ahlstrom-Munksjö’s shares is going to the district court.

Ahlstrom-Munksjö Holding 3 Oy, the majority owner of Ahlstrom-Munksjö, several minority shareholders and a trustee overseeing the interests of passive minority shareholders appealed the arbitral tribunal’s decision to the district court.

According to Ahlstrom Munksjö Holding 3 Oy, the redemption price of the minority shares determined by the arbitration court is too high. Minority shareholders and the trustee consider the redemption price set by the arbitral tribunal to be too low.

Ahlströmien, A consortium of Ehrnroothie and private equity investor Bain Capital made a tender offer for the shares of Ahlstrom-Munksjö listed on the Helsinki Stock Exchange in September 2020. The tender offer period was extended several times. Eventually, buyers achieved a more than 90 percent stake in the company in early 2021, and Ahlstrom-Munksjö’s shares were delisted.

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Among other things, Finnish Share Savers criticizes the offer and redemption process in the spring of 2021.

The dispute progressed to arbitration. The disputed share was exceptionally high. A trustee overseeing the interests of passive minority shareholders estimates that the dispute involved about € 100 million.

In February 2022, the arbitral tribunal ruled that minority shareholders were entitled to a redemption price higher than the original offer price. The initial offer for Ahlstrom shares was EUR 17.84 per share. The arbitral tribunal estimated the fair price of the share at EUR 21.55.

According to the arbitration award, the redeemers would have paid the minority shareholders approximately EUR 40 million more than originally expected on the basis of the tender offer.

HS Vision wrote Ahlstrom-Munksjön special details of the arbitration tribunal in March.

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