Panevezio statybos trestas AB (hereinafter - the Company) received the
resolution No. 214-40 dated 5 March 2018 by the Director of the Supervision
Service of the Bank of Lithuania on application of measures to Panevezio
statybos trestas AB. Following the obligations indicated in the decision, the
Company is publishing the information included in item 2 of the operative part
of the resolution by the Director of the Supervision Service of the Bank of
Lithuania:
1. Panevezio statybos trestas AB has been fined 40,000 (forty thousand) Euros
for violation of Article 17(1) of Regulation (EU) No. 596/2014 of the
European Parliament and of the Council on market abuse;
2. The Company, failing to ensure confidentiality of information related to
the investigation carried out by the Competition Council, has not disclosed
immediately this unpublished information related to the investigation in
progress and imminent measures, the maximum limit of which amounted to 21
per cents of the equity capital of the Company and was nearly 5 times
higher than the net profit of the Company for the year 2016 and therefore
could significantly prejudice the financial situation of the Company;
3. The violation resulted in asymmetry of information available for investors
and infringement of investors' interests;
4. The violation lasted for 5 days of trading in the regulated market;
5. The identified violation is not compatible with fair and transparent market
of financial instruments and protection of investors' interests, and
prejudices reliability and stability of the financial market of the
Republic of Lithuania;
6. The Company did not accept the identified violation and took no measures to
terminate the violation despite the fact that the Bank of Lithuania had
drawn the Company's attention to the violations.
The Company takes a position that public notification about the investigation
carried out by the Competition Council would have possibly done more harm to
the investors' interests and the investigation in progress than failure of such
notification because: 1) The Company treated the investigation by the
Competition Council as confidential following the instructions of the
Competition Council itself, 2) The Company has not performed any acts limiting
competition, therefore had no ground to expect any fining, in particular in the
maximum amount.
Knowing all the circumstances of the investigation by the Competition Council
in respect of the Company, the Company considered fining in the maximum amount
an unreal event, which is only theoretically possible. In that context,
publication of such information was considered to be harmful to the
shareholders of the Company, as that would be prejudicial to the reputation of
the Company and more misleading to investors than helpful to them in taking
investment related decisions. The fact that the decision of the Competition
Council to fine the Company is unfair and unreasonable is argued by the Company
at the court.
The Company published information about the decision taken by the Competition
Council immediately after it had been received following the procedure
prescribed by the law.
The resolution dated 5 March 2018 by the Director of the Supervision Service of
the Bank of Lithuania may be appealed within one month from its service
following the procedure prescribed by the Law on Administrative Proceedings of
the Republic of Lithuania. The decision on appealing the resolution by the
Director of the Supervision Service of the Bank of Lithuania Company will be
taken by the Company after the reasons for fining are analysed in detail.
Contact person:
Dalius Gesevicius
Managing Director
Tel. (+370 45) 505 503© 2018 GlobeNewswire
