Today, Grenke’s shares react with a significant price jump to news from the company in the “Grenke vs. Viceroy ”. The latter had accused the company from Baden-Baden of fraud and unfair business – including alleged nepotism in the franchising activities, where Grenke’s contacts in Austria did indeed raise some critical questions. Grenke defends himself against the allegations, including one Review of the franchise business by Warth & Klein Grant Thornton and other aspects by KPMG.
There is news from Grenke on this Tuesday. On the one hand, Grenke said they did not want to “anticipate the final test results”, as it did Board member Sebastian Hirsch formulated in Grenke’s message. On the other hand, you are reporting your own assessment today, which the group made on the basis of the first interim results and the ongoing status reports from the auditors commissioned.
So far, Grenke’s auditors have apparently not found any abnormalities …
Warth & Klein Grant Thornton initially examined four transactions in the franchise area between 2008 and 2018, according to Grenke, which, with around 60 percent of the purchase prices paid for all previously acquired franchise companies, play an essential role in the division for the company and Grenke- According to information, deliver earnings contributions. “These earnings contributions are incurred directly in the individual national companies on the one hand and in other group companies on the other. All in all, these are within the range of earnings expectations that justify an investment in equity investments, ”says the company. However, no more concrete figures are provided and information on the people who were involved in these transactions is not provided. Conflicts of interest and nepotism, however, were two of Viceroy’s central allegations against Grenke, which can hardly be refuted with the previous statement. However, according to Grenke, the procedure for determining the purchase price for the franchise companies was described as fundamentally sensible by Warth & Klein Grant Thornton.
Also checks the group through KPMG, who were previously auditors at Grenke, have so far not produced any abnormalities, according to the company. Among other things, the leasing contract portfolio was checked in random samples, and KPMG is also taking a close look at the organization at Grenke, including in matters of money laundering and fraud prevention.
… but Viceroy also follows up against Grenke
However, Fraser Perrings is also active again Viceroy Research, whose first report on Grenke caused the share price to fall. In a published today new report Viceroy is again targeting Grenke’s personal ties and possible entanglements in the area of money laundering. The accusation that insiders have enriched themselves at the expense of shareholders is also renewed.
In the case of the company’s shares, however, trading on Tuesday is volatile. A price jump to 38.58 euros, which arose after the publication of Grenke’s statement, has now been partially sold off again. The Grenke share is currently trading at EUR 36.62, 6.7 percent above the previous day’s closing price. This means that Grenke’s share price has repeatedly bounced off the increasingly stronger technical chart hurdles between 38.74 / 39.20 euros and 40.50 / 40.96 euros.
At a glance – chart and news: Grenke AG