Adler Group welcomes BaFin review order for 2021 financial statements of ADLER Real Estate AG

DGAP-News: Adler Group SA / Keyword(s): Miscellaneous
Adler Group welcomes BaFin review order for 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 review order for 2021 financial statements of ADLER Real Estate AG

Luxembourg, June 22, 2022 – Adler Group AG (“Adler Group”) welcomes the examination order (Prüfungsanordnung) of the German Federal Financial Supervisory Authority (“Bafin”) for the consolidated financial statements as at 31 December 2021 and the management report financial year 2021 of its subsidiary, ADLER Real Estate AG (“ADLER Real Estate”). A corresponding examination order has been issued to ADLER Real Estate by the Bafin.

According to the Bafin, the review order was issued in the context of the audit firm KPMG AG, auditor of ADLER Real Estate, which withdrew 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 took place with other related parties and whether these transactions were recorded completely and correctly. In the opinion of Bafin, there are therefore concrete indications that the relationships and transactions with related parties may not have been fully and correctly recorded and presented in the consolidated financial statements, contrary to the international accounting standard. (IAS) 24.

Bafin’s review and its expected results will make a further contribution to clarifying a short seller’s allegations against the Adler Group and its subsidiaries that related parties exerted influence over business transactions and events.

After the allegations became known and with the start of the corporate reorganization initiated when Prof. Dr. A. Stefan Kirsten took over as Chairman of the Adler Group Board of Directors on February 16, 2022, a comprehensive package of measures has been put in place 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 the Adler Group and ADLER Real Estate for the financial year 2021 by April 30, 2022, the disclosure of the conclusions of the examination and their inclusion in the consolidated financial statements. financial statements, and full disclosure of structural and procedural measures to improve transparency and corporate governance. This also includes the appointment of Thomas Echelmeyer as interim CFO on an advisory basis, downsizing and staffing effectiveness of Board committees, strengthening compliance functions with the support of an external consulting firm and new measures to integrate the Adler Group.

Contact

Investor Relations:

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Contact:
Thierry Beaudemoulin, CEO

22.06.2022 Broadcast of a Corporate News, transmitted by the DGAP – a service of EQS Group AG.
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