Finnish court denies Afarak's appeal on regulator's €1.5M fine

The Helsinki Administrative Court in Finland rejected Afarak Group Oyj's bid to overturn a €1.5 million fine imposed by the Financial Supervisory Authority over the company's failure to disclose inside information and maintain insider lists.

The specialty alloys producer said Jan. 26 that it will study the court's decision and evaluate its next legal actions. The company noted that the ruling is not yet legally binding and it can file an appeal within 30 days of receiving the decision.

In September 2019, the regulator handed the penalty after the Regional State Administrative Agency for Southern Finland granted a request by certain Afarak Group minority shareholders for a special audit of the company from 2015 to 2017 to review transactions related to the immediate circle of COO and major shareholder Danko Koncar.

Koncar had been fined €110 million over his failure to launch a public bid for Afarak Group shares after the regulator claimed that Koncar and related entities acted in concert to exercise control of the company.

In May 2020, Afarak said it would file for business rescue for its South African operations due to the economic impact of the COVID-19 pandemic.

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