PWC Special audit at TAG Immobilien AG invalidates allegations against Rolf Elgeti and completely refutes negative assertions

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): Miscellaneous


03.02.2014 / 07:15





PWC Special audit at TAG Immobilien AG invalidates allegations against Rolf

Elgeti and completely refutes negative assertions


Hamburg, 3 February 2014 - TAG Immobilien AG ('TAG' or 'the Company' in the

following) announces that the Company's Supervisory Board has received the

results of the external special audit by the PricewaterhouseCoopers AG

auditing company ('PWC' in the following). In conclusion, PWC has

completely invalidated the allegations that a newspaper had raised against

organs of TAG in early October 2013, regarding allegedly disadvantageous

acquisitions and conflicts of interest between the CEO Mr Rolf Elgeti and

TAG, and has completely refutes the negative assertions.


PWC conducted the investigation during the period from late October 2013 to

mid-January 2014 and came to the following conclusions:


* The residential portfolios in Chemnitz and Eberswalde were not purchased

at an inflated price. In each case, the purchase price was within the

corridor of the offers received by TAG and within the portfolios' market

values as determined by third parties including PWC. Since the purchase

prices were partly paid in shares at a price above the share price on that

day, it can be assumed that favourable financing was obtained at attractive



* PWC rules out that the acquisition of the Rostock property by the CEO was

in any way a preferential purchase. TAG had declined to purchase the

property 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 value

at the time as determined by PWC during its special audit.


* The private real-estate transactions that Mr Elgeti has made since taking

over the office of CEO in 2009 were covered in the employment contract and

were made with the Supervisory Board's approval in each case. PWC found no

evidence of exertion of influence by Mr Elgeti regarding purchase

decisions, nor of conflicts of competition and/or interest.


Specifically, the article claimed that excessive prices had been paid in

the acquisition of two residential portfolios in Chemnitz and Eberswalde in

2011 and 2012, and that the transactions may have been to the detriment of

the Company. It also alleged conflicts of interest that had existed in

connection with the CEO's 2012 purchase of the apartment building in

Rostock, and which might have arisen through non-disclosed private business

activities 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 TAG

Immobilien AG CEO Rolf Elgeti. 'Now we can concentrate all the more on

enhancing TAG's position as one of the most effective and efficient

real-estate companies in Germany.'


To avoid any appearance of possible conflicts of interest, Mr Elgeti

already transferred his private business activities, insofar as they relate

to real estate and his holdings in various companies, to an accounting firm

at the turn of the year. During his tenure as CEO of TAG, Mr Elgeti will

continue this trusteeship solution in place and will not exercise

significant influence on the operational activities of his privately held

real-estate companies.


The Supervisory Board, which had already expressed its full confidence in

Mr Elgeti in October 2013, feels it has been confirmed in its assessment:

'We regret any confusion that may have arisen, and which we have now

conclusively eliminated with this expert assessment,' says Dr Lutz R.

Ristow, Chairman of the TAG Supervisory Board.




Press enquiries:

TAG Immobilien AG

Head of Investor & Public Relations

Dominique Mann

Phone +49 (0) 40 380 32 300

Fax +49 (0) 40 380 32 390



End of Corporate News



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Language: English

Company: TAG Immobilien AG

Steckelhörn 5

20457 Hamburg


Phone: 040 380 32 0

Fax: 040 380 32 390



ISIN: DE0008303504, XS0954227210

WKN: 830350, A1TNFU

Indices: MDAX

Listed: Regulierter Markt in Frankfurt (Prime Standard), München;

Freiverkehr in Berlin, Düsseldorf, Hamburg, Hannover,




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