Italy's market watchdog alleges irregularities by CHL management, suspends shares (updated)

Centro HL Distribuzione SpA

06/12/2019 12:47

(Adds details, background on company)
    MILAN, Dec 6 (Reuters) - Italy's market watchdog said on
Friday it had decided to temporarily suspend from trading the
shares of information technology and e-commerce service provider
CHL  CHL.MI  over allegations of serious irregularities and
possible market abuse.
    Consob said the alleged irregularities related to
information about the company's economic and financial situation
that CHL's top management had provided to investors.
    "Anomalies emerged during checks, which are still ongoing,
indicating numerous and serious elements of irregularity
relating to the activities carried out by the company's top
executives," the watchdog said in a statement.
    It added that information provided by the company "did not
guarantee transparency, an orderly trading of its stock and the 
protection of investors."
    CHL, which with a market capitalisation of just 6.8 million
euros ($7.5 million) is a relative minnow on the Milan bourse,
did not immediately respond to phone calls and an emailed
request for comment from Reuters. 
    Listed in 2000 just before the dot-com bubble burst, the
Florence-based company raised 1.5 million euros of new capital
in July. Presenting a new business plan to 2023 last month, it
warned there were "substantial uncertainties" over its ability
to remain in business.
    CHL is in the process of buying Polish-based Airtime
Sp.Zo.o, Romanian-based Prime Exchange Technologies, and
Irish-based Rubelite, with the aim of closing the deals by Dec.
31. A shareholder meeting is scheduled for Dec. 20 to approve a
further 6.7 million euro capital increase. 
    CHL, which posted a 2.1 million euro loss in the first half
of this year, has also agreed to buy a stake of at least 51% in
Italian utility Aplos for up to 2.4 million euros.  urn:newsml:reuters.com:*:nFWN27G1NS
 urn:newsml:reuters.com:*:nFWN27Z0ZC.
       
($1 = 0.9073 euros)

 (Reporting by Andrea Mandala, writing by Giulio Piovaccari;
Editing by Kirsten Donovan)
 ((silvia.aloisi@thomsonreuters.com; +39 02 66129 723; Reuters
Messaging: silvia.aloisi.thomsonreuters.com@reuters.net))