Octavian Advisors
Octavian Advisors: OCTAVIAN ADVISORS ISSUES STATEMENT ON BALDA
Octavian Advisors / Key word(s): Legal Matter OCTAVIAN ADVISORS ISSUES STATEMENT ON BALDA Calls on Balda to Divest Remainder of TPK Stake Requests Special Auditor at Annual General Meeting NEW YORK – April 11, 2012 – Octavian Advisors LP (‘Octavian’), which through various funds owns approximately 8% of the outstanding shares of Balda AG (‘Balda’), today issued the following statement: ‘At the 11-hour Extraordinary General Meeting in February, Octavian’s proposal to replace Balda’s Supervisory Board received overwhelming support from our fellow shareholders not affiliated with Michael Chiang. We are pleased that this effort to hold the Supervisory Board accountable has led Balda to take the first step to unlock value by divesting half of the company’s non-strategic stake in TPK and announcing a special dividend. However, this is not enough, and we call on Balda to follow through on selling the remaining TPK stake as it previously stated it would, and immediately return the proceeds to shareholders. ‘We have requested an independent special auditor to investigate the failed sale of Balda’s stake in TPK in 2011, as well as potential breaches of fiduciary duties by members of the Supervisory Board and whether Michael Chiang or his proxies have inappropriately influenced the Board. We believe the so-called voluntary special audit commissioned by Balda’s current Management Board in cooperation with the Supervisory Board is completely inadequate, as any probe commissioned by those being investigated is unlikely to be objective and fair. ‘In addition, we have filed a formal objection to the results of the EGM because its outcome was decided by a large group of shares that we believe was improperly allowed to be voted. We have also filed an information request in court based on Balda’s refusal to adequately answer shareholders’ questions, and we reserve the right to requisition another EGM to elect independent directors once the investigation into these matters has been completed. ‘While we pursue legal avenues designed to give Balda’s shareholders an opportunity to be represented on their company’s Board, Octavian will not propose independent directors at the Annual General Meeting; where things stand now, it would be pointless to seek election at another meeting where the will of shareholders is blatantly ignored. We remain committed to protecting our investment and to effecting positive change at Balda for the benefit of all shareholders.’ About Octavian Advisors Contacts: For German Media
For International Media End of financial news 11.04.2012 Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer is solely responsible for the content of this announcement. DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases. Media archive at www.dgap-medientreff.de and www.dgap.de |
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