GS-TMT Shareholders: Stock Value Artificially Lowered Through Fictitious Transactions

Shareholders of GS-TMT d.d. Travnik have been defrauded of over half a million marks in suspicious stock market transactions by the majority owner, involving related parties from Germany, claim the company's shareholders. GS-TMT is a machine factory.

Namely, the majority owner Snježana Kopruner initiated a process of squeezing out other owners and, according to the shareholders, conducted fictitious transactions to artificially lower the stock value.

GS-TMT is a company in which Snježana Kopruner holds majority ownership through her companies (around 67%) registered in Germany. Privatization funds hold 12.5% of the shares, and the rest are small shareholders (individuals).

In May 2016, the Supervisory Board, managed by Kopruner, proposed reorganizing the company into a limited liability company (d.o.o.), which other shareholders opposed because they cannot legally be owners. According to the law, after the decision on reorganization is made, they must pay the funds a fair price for the shares, defined as the market price over the last six months.

Since their shares were never traded on the stock exchange, they conducted an off-exchange (contractual) transaction of shares between two German companies owned by Kopruner eight days before the general meeting where the decision was made.

This fixed the price at around 11 KM per share, while the estimated value of the share is 47-57 KM. Shareholders are suffering direct damages of over half a million marks – state the co-owners of the company.

Subsequent checks revealed that, in fact, fictitious transactions were carried out between related parties, including members of her family, among others her daughter.