Adler Group welcomes Bafin's examination order for the 2021 financial statements of ADLER Real Estate AG
June 22, 2022 at 08:36 am
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DGAP-News: Adler Group S.A.
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Adler Group welcomes Bafin's examination order for the 2021 financial statements of ADLER Real Estate AG
22.06.2022 / 09:34
The issuer is solely responsible for the content of this announcement.
Adler Group welcomes Bafin's examination order for the 2021 financial statements of ADLER Real Estate AG
Luxembourg, 22 June 2022 – Adler Group S.A. ("Adler Group") welcomes the examination order (Prüfungsanordnung) of the German Federal Financial Supervisory Authority ("Bafin") for the consolidated financial statements as of 31 December 2021 and the combined management report for the financial year 2021 of its subsidiary, ADLER Real Estate AG ("ADLER Real Estate"). A corresponding examination order was delivered to ADLER Real Estate by Bafin.
According to Bafin, the examination order has been issued against the background of KPMG AG auditing firm, auditor of ADLER Real Estate, disclaiming on an audit opinion on the consolidated financial statements of ADLER Real Estate. The reason given by the auditor was that it was not possible to assess with sufficient certainty whether transactions have taken place with other related parties and whether these transactions have been recorded completely and correctly. In the opinion of Bafin, there are thus concrete indications that relationships and transactions with related parties may not have been fully and correctly recorded and presented in the consolidated financial statements, contrary to International Accounting Standard (IAS) 24.
The examination by Bafin and its expected results will make a further contribution to clarifying the allegations by a short seller against the Adler Group and its subsidiaries, according to which related parties had exerted influence on transactions and business events.
After the allegations had become known and with the start of the reorganization of the company initiated when Prof. Dr. A. Stefan Kirsten assumed his role as a Chairman of the Board of Directors of Adler Group on 16 February 2022, a comprehensive package of measures was implemented to improve transparency and corporate governance. This included the conclusion of the review by KPMG Forensic with the requirement to submit audited consolidated financial statements of Adler Group and ADLER Real Estate for the 2021 financial year by 30 April 2022, the disclosure of the findings of the review and their reflection in the consolidated financial statements, and the comprehensive communication of the structural and procedural measures to improve transparency and corporate governance. This also includes the appointment of Thomas Echelmeyer as interim CFO on a consultancy basis, the downsizing and effective staffing of the board of directors' committees, the strengthening of the compliance functions with the support of an external consulting firm, and further steps to integrate the Adler Group.
Contact
Investor Relations:
T +352 278 456 710
F +352 203 015 00
E investorrelations@adler-group.com
Contact:
Thierry Beaudemoulin, CEO
22.06.2022 Dissemination of a Corporate News, transmitted by DGAP - a service of EQS Group AG. The issuer is solely responsible for the content of this announcement.
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Language:
English
Company:
Adler Group S.A.
55, Allée Scheffer
L-2520 Luxembourg
Luxemburg
Phone:
+352 278 456 710
Fax:
+352 203 015 00
E-mail:
investorrelations@adler-group.com
Internet:
www.adler-group.com
ISIN:
LU1250154413
WKN:
A14U78
Indices:
SDAX, FTSE EPRA/NAREIT Global Index, FTSE EPRA/NAREIT Developed Europe Index, FTSE EPRA/NAREIT Germany Index
Listed:
Regulated Market in Frankfurt (Prime Standard); Regulated Unofficial Market in Berlin, Dusseldorf, Hamburg, Hanover, Munich, Stuttgart, Tradegate Exchange; London, Luxembourg Stock Exchange, SIX
Adler Group SA, formerly known as ADO Properties, is a Luxembourg-based real estate company. The Company operates in Germany, in the residential real estate field with approximately 70,000 residential units, and a development pipeline of approximately 10,000 new flats in Germany. The Company focuses on asset and portfolio management, property and facility management and developing residential properties throughout Germany. The Company operates through two business segments: Residential property management and development. Residential property management offers renting and managing residential properties, the management of tenancy agreements and marketing of residential units with the focus on optimization of rental income. The development side of the business splits into build-to-sell projects and build-to-hold projects.