PWC Special audit at TAG Immobilien AG invalidates allegations against Rolf Elgeti and completely refutes negative assertions
DGAP-News: TAG Immobilien AG / Key word(s): Miscellaneous03.02.2014 / 07:15---------------------------------------------------------------------PRESS RELEASEPWC Special audit at TAG Immobilien AG invalidates allegations against RolfElgeti and completely refutes negative assertionsHamburg, 3 February 2014 - TAG Immobilien AG ('TAG' or 'the Company' in thefollowing) announces that the Company's Supervisory Board has received theresults of the external special audit by the PricewaterhouseCoopers AGauditing company ('PWC' in the following). In conclusion, PWC hascompletely invalidated the allegations that a newspaper had raised againstorgans of TAG in early October 2013, regarding allegedly disadvantageousacquisitions and conflicts of interest between the CEO Mr Rolf Elgeti andTAG, and has completely refutes the negative assertions.PWC conducted the investigation during the period from late October 2013 tomid-January 2014 and came to the following conclusions:* The residential portfolios in Chemnitz and Eberswalde were not purchasedat an inflated price. In each case, the purchase price was within thecorridor of the offers received by TAG and within the portfolios' marketvalues as determined by third parties including PWC. Since the purchaseprices were partly paid in shares at a price above the share price on thatday, it can be assumed that favourable financing was obtained at attractiveterms.* PWC rules out that the acquisition of the Rostock property by the CEO wasin any way a preferential purchase. TAG had declined to purchase theproperty prior to its purchase by the buyer, in which Mr Elgeti owns a 19 %stake, in October 2012. The purchase price paid exceeded the market valueat the time as determined by PWC during its special audit.* The private real-estate transactions that Mr Elgeti has made since takingover the office of CEO in 2009 were covered in the employment contract andwere made with the Supervisory Board's approval in each case. PWC found noevidence of exertion of influence by Mr Elgeti regarding purchasedecisions, nor of conflicts of competition and/or interest.Specifically, the article claimed that excessive prices had been paid inthe acquisition of two residential portfolios in Chemnitz and Eberswalde in2011 and 2012, and that the transactions may have been to the detriment ofthe Company. It also alleged conflicts of interest that had existed inconnection with the CEO's 2012 purchase of the apartment building inRostock, and which might have arisen through non-disclosed private businessactivities by the CEO in various real estate companies. 'I'm glad that these allegations, which were untenable from the beginning,have now been disproved by an independent agent as well,' says TAGImmobilien AG CEO Rolf Elgeti. 'Now we can concentrate all the more onenhancing TAG's position as one of the most effective and efficientreal-estate companies in Germany.'To avoid any appearance of possible conflicts of interest, Mr Elgetialready transferred his private business activities, insofar as they relateto real estate and his holdings in various companies, to an accounting firmat the turn of the year. During his tenure as CEO of TAG, Mr Elgeti willcontinue this trusteeship solution in place and will not exercisesignificant influence on the operational activities of his privately heldreal-estate companies.The Supervisory Board, which had already expressed its full confidence inMr Elgeti in October 2013, feels it has been confirmed in its assessment:'We regret any confusion that may have arisen, and which we have nowconclusively eliminated with this expert assessment,' says Dr Lutz R.Ristow, Chairman of the TAG Supervisory Board.Press enquiries:TAG Immobilien AGHead of Investor & Public RelationsDominique MannPhone +49 (0) 40 380 32 300Fax +49 (0) 40 380 32 390pr@tag-ag.comEnd of Corporate News---------------------------------------------------------------------03.02.2014 Dissemination of a Corporate News, transmitted by DGAP - acompany of EQS Group AG.The issuer is solely responsible for the content of this announcement.DGAP's Distribution Services include Regulatory Announcements,Financial/Corporate News and Press Releases.Media archive at www.dgap-medientreff.de and www.dgap.de---------------------------------------------------------------------Language: English Company: TAG Immobilien AG Steckelhörn 5 20457 Hamburg Germany Phone: 040 380 32 0 Fax: 040 380 32 390 E-mail: ir@tag-ag.com Internet: 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 --------------------------------------------------------------------- 250663 03.02.2014
