Ministry of Finance withdraws from directive protecting investors from forced buybacks

Poland’s Finance Ministry has weakened proposed protections for minority shareholders in mandatory buyouts. The latest draft lowers the ownership threshold for a squeeze-out from 95% to 90% while largely retaining existing pricing rules. An earlier version would have required a broadly supported tender offer before a compulsory purchase, effectively setting a much higher threshold in many cases. Under the revised proposal, the tender price will apply only when the 90% threshold is reached through an offer accepted by holders of 90% of the remaining shares. Otherwise, current valuation methods will apply, supplemented by a fairness opinion commissioned by the controlling shareholder.

Retail investor representatives warn that this could favor large listed companies and leave minority investors inadequately protected.

(pb.pl)