Adler gifts German watchdog a shot at redemption

Adler SA

04/05/2022 10:58

(The author is a Reuters Breakingviews columnist.  The opinions
expressed are her own.)
    By Aimee Donnellan
    LONDON, May 4 (Reuters Breakingviews) - BaFin’s probe into
the property group has gained added weight after KPMG’s refusal
to approve its 2021 accounts. The mess is an important test for
new boss Mark Branson after the regulator’s Wirecard failings.
Adler’s patchy disclosure and shaky governance make it an easy
target.    
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    CONTEXT NEWS
    - Short-seller Viceroy Research said on Oct. 6, 2021 that
German landlord Adler's balance sheet had been artificially
inflated, prompting financial watchdog BaFin to examine the
company's financial reports.
    - Adler rejected Viceroy's allegations and appointed
property consultancy CBRE and KPMG to investigate. Adler said in
March that KPMG could not disprove all of Viceroy’s claims. The
auditor also refused to sign off on Adler’s 2021 results,
prompting a 43% fall in the company’s shares on May 2.
    - Adler will be shut out of banking and capital markets
until its financial statements have been audited, the company
said on May 2 after the resignation of its board of directors
due to the accounting scandal.
    - Adler shares were down 8% at 6.27 euros by 0800 GMT on May
4. The stock is down 54% since Viceroy’s attack. 

 (Editing by Ed Cropley, Streisand Neto and Oliver Taslic)
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