The court rejected Koncar's request to reverse a Financial Supervisory Authority's decision which requires Koncar to make a public bid for the shares in Afarak.
In a stock market statement, Afarak stated: “In its decision, the Administrative Court found that Kermas Ltd, which owns shares in Afarak Group Plc, had been controlled by Koncar in 2009 and that Koncar was therefore deemed to be a shareholder of Afarak Group Plc.
“Koncar was considered to have been acting in concert with Hino Resources Co Ltd, Finaline Business Limited, and therefore he and his wife, Jelena Manojlovic, were in a position to exercise dominance over Afarak Group Plc.
“When Kermas Ltd and Hino Resources Co Ltd's share of the votes in Afarak Group Plc's shares had exceeded the mandatory bid limit of 30% on October 22, 2009, the offer obligation was deemed to have arisen at that time.
“The Administrative Court took the view that Koncar was the party that needs to make the offer.
“Consequently, the Financial Supervisory Authority has been authorised to oblige the appellant to fulfill the obligations imposed by the threat of fines.”
Additionally, the court also rejected a request from Koncar to annul a FCA decision ordering him to pay a €40mln fine but held that an additional €10mln fine amount had not yet accrued.
Afarak added: “The company is not a party to the proceedings and/or the judgement.
“The company was also informed that Dr Koncar will immediately appeal against the decision of the Helsinki Administrative Court in front of the Supreme Administrative Court of Finland.”