Press release 24 August 2020
FIN-FSA ordered supplementary amounts of conditional fine imposed on Danko Koncar payable
On 21 August 2020, the Financial Supervisory Authority (FIN-FSA) has ordered Danko Koncar to pay the supplementary amounts of a conditional fine accrued from 17 May 2019 until 16 May 2020, amounting to a hundred and twenty million (120,000,000) euro. The supplementary amounts of the conditional fine were ordered payable since Koncar has failed to publish a bid for shares in Afarak Group Plc and to present a valid reason for non-compliance with the obligation. Koncar's failure to comply with the provisions on the obligation to launch a bid has served to undermine confidence in the securities markets.
On 21 February 2018, the FIN-FSA obliged Koncar to launch a public bid for Afarak shares and imposed a running conditional fine to enforce the obligations stated in the decision. The deadline imposed on Koncar to publish a bid lapsed a month after the service of the decision, i.e. on 16 June 2018. The base amount of the conditional fine, 40,000,000 euro, was ordered payable on 9 July 2018. In addition, the supplementary amounts of the conditional fine accrued from 17 June 2018 until 16 May 2019, totalling 110,000,000 euro, were ordered payable on 14 June 2019. The obligations imposed on Koncar and the running conditional fines remain in force also after the supplementary amounts have been ordered payable.
The FIN-FSA decision on the obligation to launch a bid and the decision on the imposition of the conditional fine, as regards the base amount, are legally binding. The present decision to order the supplementary amounts payable is not legally binding. Koncar has the right to appeal the decision to the Helsinki Administrative Court within 30 days of the date of service of the decision. Information on the legal validity of the decision is available at the FIN-FSA website.
Sari Helminen, Head of Division. Requests for interviews are coordinated by FIN-FSA Communications, tel. +358 9 183 5030 (weekdays 9.00–16.00).
FIN-FSA decision (pdf)