Adler Group surges after KPMG audit finds 'no evidence' of systematic fraud

Adler SA

22/04/2022 08:45

** Shares of Luxembourg-based real estate company Adler
Group  ADJ.DE  jump 16%, on track for best day in almost 5
months 
    ** The company said on Thursday accountancy firm KPMG has
found no evidence of systematic fraud after review of the
allegations by activist investor Viceroy Research  urn:newsml:reuters.com:*:nFWN2WJ1SV
    ** "However, KPMG Forensic has identified deficiencies in
the documentation and the process handling of those
transactions," the company added
    ** "Expect shares to rally first," a local trader says
    ** Chairman of the Board Artur Stefan Kirsten said in a
statement on Friday it considers Viceroy allegations untenable
after KPMG audit  urn:newsml:reuters.com:*:nASM0008KN
    ** In a report published on Oct. 6, short seller Fraser
Perring's Viceroy Research said Adler Group's "balance sheet has
been artificially inflated to a significant degree, its shares
are not investible", causing the group's shares to tumble.
 urn:newsml:reuters.com:*:nL1N2R21LY
    ** At that time, the company strongly rejected allegations
made in the report
    ** The stock is a top performer on the German small-cap
index  .SDAXI 

 (Reporting by Anastasiia Kozlova)
 ((Anastasiia.Kozlova@thomsonreuters.com))