Echo Polska slumps after director is detained


Echo Polska slumps after director is detained

Published Date: 2017-12-21 | Source: Stephen Gunnion | Author: Stephen Gunnion

Echo Polska slumps after director is detained

Shareholder Redefine calls for director's resignation in the interests of good corporate governance

Shares in Echo Polska and shareholder Redefine Properties fell sharply yesterday after a non-executive director of the Polish-focused property group was detained by the Central Anti-Corruption Bureau in that country.

In a statement, Echo Polska said Przemyslaw Krych had been detained at the order of the Regional Prosecutor's office in the city of Katowice. It said it didn't know the content of charges alleged against Krych as the matter was being heard behind closed doors but that he denied any wrongdoing.

"If it is established that these charges relate to activities involving the company's business, the company will conduct an independent investigation and take any other actions as it deems necessary to ensure the protection of the interests of the company and its shareholders," the company said in a statement.

Redefine Properties, which is a major shareholder in Echo Polska, said the investigation related to Krych in his personal capacity and not as a director of EPP, where he isn't involved in any of the day-to-day activities as he has a non-executive role. In a statement, it said that CEO Andrew Konig and executive chairman Marc Wainer, who are also non-executive directors of Echo Polska, were confident with the levels of corporate governance at the group and had no reason to believe that it had "transgressed the law" in any of its transactions. However, in the interests of good corporate governance, it requested Echo Polska to procure Krych's resignation from its board.

Echo Polksa's shares closed 20% lower at R13.95 while Redefine's fell 5% to R10.35.

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