Feboran SPLTD - - Short Company profile

The deals for the distribution of fertilizer plant products from Euro Fert AD and for the purchase of polymer packaging from Asenova Krepost AD were again rejected by the shareholders of Neochim at the extraordinary general meeting held on December 5, 2024. The two deals were previously proposed, discussed and rejected at the regular annual general meeting of shareholders, which was held at the end of June 2024. According to representatives of shareholders in Neochim, the discounts set in the contract with Euro Fert are large, and last year Neochim recorded a loss and the distribution deal would not have been appropriate for the company. Currently, the company is implementing two contracts for the distribution of products - with Euro Fert and Borealis L.A.T. Euro Fert is the second largest shareholder in Neochim. An objection to the distribution deal was raised during the meeting by the representative of "Reya Ventures" EAD Dimitar Petrov Leksin. "Reya Ventures" is a subsidiary of "Agropolychim", which is in the process of acquiring 100% of the capital of "Feboran" - a company of the Czech Agrofert, which holds 20.3% of the shares of "Neochim". Leksin, as well as Philip Rombout from "Agropolychim", point out that the discounts set for "Euro Fert" are larger than usual, and the reasoned report of the management of "Neochim" does not take into account the market risk. Rombout emphasizes that the discount under the current contract with "Euro Fert" is also higher, and that it is not normal to have only one distributor of the company's products. According to Vladislav Panev, also a shareholder in the company, "Neochim" has lost about 18 million because of the current discount alone. leva in sales revenue, recalling that it ended 2023 at a loss. According to him, the distribution deal with Euro Fert is inappropriate. When voting on the deal, the shares "for" were 959,410, and "against" - 639,638, but a three-quarters majority is required for approval. Therefore, the deal is rejected. A similar scenario is played out when voting on the deal with Asenova Krepost for polymer packaging, for which, however, no discussions were held, according to the minutes. The shareholders of Neochim have also elected a new supervisory board. Three proposals were voted on - the company's, the shareholder Eco Tech AD and Feboran's. The proposal of "Eco Tech" for a supervisory board consisting of Margarita Georgieva Dimitrova, Tosho Ivanov Dimov, Dimcho Staykov Georgiev, "Zarneni Hrani Bulgaria" with representative Nikola Peev Mishev and Antonia Zaharieva Zhelyazkova was accepted. The shareholders also voted for the company "Grand Thornton" OOD to audit the company's sustainability report for 2024. "Neochim" is required to prepare such a report in accordance with the requirements of European legislation. In the last year, the shares of "Neochim" have increased in price by over 4%, and the market capitalization amounts to just over 69 million leva.