Globo – without further comments
From Globo’s website:
FOR IMMEDIATE RELEASE
(“Globo” or “the Group”)
Globo plc issues the following statement:
On Friday 23 October 2015 the Board of Directors of the Group became aware of a report published by Quintessential Capital Management (“QCM”).
Following the announcement by the Company on the morning of Friday 23 October 2015, an emergency Board meeting was convened as soon as practicable for Saturday 24 October 2015 to discuss the allegations in the report and to ascertain the actions that would be required to resolve the matter. It was intended that an appropriate independent forensic accounting team be appointed to investigate the claims.
However, at the Board meeting, Costis Papadimitrakopoulos the CEO of the Group brought to the attention of the Board certain matters regarding the falsification of data and the misrepresentation of the Company’s financial situation, and offered his resignation, as did Dimitris Gryparis the CFO of the Group.
Following the meeting and receipt of legal advice, a committee of the board was set up, comprising the non-executive Directors only (the “Committee”). The Committee has accepted the resignations of Costis Papadimitrakopoulos and Dimitris Gryparis from the Company with immediate effect. Gerasimos (Makis) Bonanos (the COO) has been suspended from his duties with the Company also with immediate effect, pending the outcome of appropriate investigations. All of the executive directors have agreed to make themselves available and fully co-operate with any investigations.
The Committee has initiated discussions with appropriate advisers in relation to the next steps and to ascertain the true financial position of the Company. In addition, the Committee has asked the Company’s lawyers to notify the matter to the appropriate authorities and the Committee has informed the Company’s principal bankers.
Further announcements will be made in due course. In the meantime the Company’s shares will remain suspended from trading as per the dealing notice on Friday 23 October 2015.
Edit: It keeps getting better:
Globo also said that Papadimitrakopoulos had informed the company that up to last Thursday he has sold 42.05 million shares in the company, and pledged 10 million shares under a personal loan agreement with Lantau Holdings Ltd – a loan that will default at close of business Monday due to two consecutive days of the suspension of the company’s shares from trading.
At Globo’s last quoted price before suspension of 29.45 pence, the share sale would amount to GBP11.9 million.
This means Papadimitrakopoulos’ holding in the company has been reduced from 18.67%, or 69.78 million shares, to 7.42%, or 27.73 million shares. Globo noted that it has requested additional details about these dealings, and does not yet “possess all relevant information about their timing and nature.” It will make a further announcement once this information is received.
Good call avoiding this.