DGAP-News: TAG Immobilien AG refutes allegations made by 'Welt am Sonntag'
(firmenpresse) - DGAP-News: TAG Immobilien AG / Key word(s): Statement
TAG Immobilien AG refutes allegations made by 'Welt am Sonntag'
08.10.2013 / 10:32
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PRESS RELEASE
TAG Immobilien AG refutes allegations made by 'Welt am Sonntag'
Hamburg (8 October 2013) - TAG Immobilien AG ('TAG') refutes the
allegations made against the company and its organs by Germany's 'Welt am
Sonntag' in its 6 October 2013 edition, and hereby summarises the key facts
that show these allegations - of business practices that are supposedly
disadvantageous to TAG and contravene the principles of good corporate
governance - to be baseless.
The claim that TAG paid too much for the 2011 acquisition of the portfolios
in Chemnitz and Eberswalde does not take into account the specific
conditions of the transactions, which were structured as share deals -
involving the acquisition of shares in companies - and were partially paid
for in shares.
The use of this structure allowed the company to reduce the cash component,
minimise risk, and take over the attached financing. This would not have
been possible with a direct purchase, and these advantages were priced in.
The residential properties have since performed well, and the investments
are profitable. Their market prices were judged by the company's
independent surveyors to be higher than their purchase prices at the time
of the purchase and even more so today.
The purchase of a tower block in Rostock, by a company in which Mr Elgeti
holds a minority stake, is not related to these acquisitions in any way. A
purchase of this asset would not have been possible for TAG for a number of
reasons, not least because the deal size and the technical condition of the
building were not compatible with TAG's acquisition criteria. Before its
execution, the purchase had been cleared with the Head of the Supervisory
Board.
The Supervisory Board was kept informed at all times of Mr Elgeti's various
stakes in companies, some of which he had largely already held when he took
over the CEO position. Mr Elgeti's contract stipulates that he is
authorised to maintain these investments, provided that there are no
conflicts of interest and no negative impact on his work as CEO of TAG.
Mr Elgeti currently owns 17 residential properties, of which he already
held 16 before joining TAG. These were largely financed through loans. He
owns stakes in 23 real estate owning entities mainly as minority
shareholder and in some instances he is also a director of these. 14 of
these existed prior to him joining TAG. They hold 77 assets of which 16
were purchased after his appointment as CEO of TAG.
TAG regrets that the facts provided to the 'Welt am Sonntag' in the course
of its research were partly presented in a misleading way. However, TAG
does not see a connection between this article which led to some pressure
on its shares yesterday and intensified short selling in TAG shares last
week as was speculated in the market yesterday.
The Management Board reiterates that Mr Elgeti's activities at no point
constituted a conflict of interest, and that he will continue to work
tirelessly for the good of TAG Immobilien.
Press enquiries:
TAG Immobilien AG
Head of Investor&Public Relations
Dominique Mann
Tel. +49 (0) 40 380 32 300
Fax +49 (0) 40 380 32 390
pr(at)tag-ag.com
End of Corporate News
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08.10.2013 Dissemination of a Corporate News, transmitted by DGAP - a
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Language: English
Company: TAG Immobilien AG
Steckelhörn 5
20457 Hamburg
Germany
Phone: 040 380 32 0
Fax: 040 380 32 390
E-mail: ir(at)tag-ag.com
Internet: http://www.tag-ag.com
ISIN: DE0008303504, XS0954227210
WKN: 830350, A1TNFU
Indices: MDAX
Listed: Regulierter Markt in Frankfurt (Prime Standard), München;
Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,
Stuttgart
End of News DGAP News-Service
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233709 08.10.2013
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Datum: 08.10.2013 - 10:32 Uhr
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News-ID 303554
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