Enkraft seeks special auditor to see if ABO Wind breached disclosure rules

ABO Energy GmbH & Co KgaA

25/03/2024 15:41

FRANKFURT, March 25 (Reuters) - Activist energy fund
Enkraft is seeking to appoint a special auditor at ABO Wind
 AB9.DE  to examine whether the German renewables firm informed
shareholders too late about plans to effectively consolidate
power among its main owners.
    If such an auditor is appointed and decides ABO Wind did
breach disclosure rules, it could strengthen the hand of
investors in any potential lawsuits against the company.
    However, it seems unlikely Enkraft's proposal will be
adopted at ABO Wind's annual general meeting on April 30 as the
group's main owners hold a majority of shares.
    ABO Wind last year unveiled plans to change into a so-called
KGaA entity, which would effectively boost the influence of the
families of its two founders that jointly hold 52% of the group.
    Enkraft, which owns around 5% of ABO Wind, says it took the
group less than a week from saying it was considering the plan
to deciding its was beneficial to stakeholders. Shares in ABO
Wind plunged after the initial announcement.
    "There are indications that the change of legal form may
have been planned for a much longer period of time," Enkraft
said in a letter to ABO Wind seen by Reuters, referring to the
first announcement dated June 1, 2023.
    ABO Wind said it immediately informed markets about its
plans.
    Under German corporate rules, companies are obliged to
swiftly inform capital markets about potentially market-moving
information or risk potential lawsuits seeking damages claims.
    Investors, for example, have sued Volkswagen  VOWG_p.DE  and
main owner Porsche SE  PSHG_p.DE  for suspected market
manipulation, alleging they informed markets too late about the
carmaker's rigging of diesel engine emissions tests. Volkswagen
and Porsche SE have denied the allegations.

 (Reporting by Christoph Steitz
Editing by Mark Potter)
 ((christoph.steitz@thomsonreuters.com; +49 30 220 133 647;))