The trading has been stopped due to potential errors in Agrokor’s financial statements and the appointment of a new auditing company.
On Tuesday, the Croatian Financial Services Supervisory Agency (Hanfa) temporarily suspended the trading of shares of eight Agrokor companies at the Zagreb Stock Exchange. Until the 15th of May, shares of Ledo, Belje, PIK Vinkovci, Tisak, Vupik, Zvijezda, Žitnjak and Jamnica will not be traded, reports Večernji List on May the 2nd, 2017.
Shares of the eight Agrokor companies have not been traded since the 27th of April, when the trading was temporarily stopped by the Zagreb Stock Exchange itself, after these companies reported that they would not publish audited financial statements for 2016 by the end of April. They also announced that they would make a decision on appointing PricewaterhouseCoopers as auditors for 2016.
In its explanation of the order to the Zagreb Stock Exchange to suspend trading, Hanfa points out that Agrokor’s companies announced late last week that they had received the request from Agrokor’s commissioner to convene their general assemblies in order to propose the appointment of a new auditing company.
Hanfa also points out that Agrokor announced that “the group, in close cooperation with its advisors, has found, during the preliminary checks, potential errors in the group’s financial reports.” “These checks are ongoing and the group asks that the parties do not rely on its financial statements from the past until the checks are completed and the situation is properly clarified.” Hanfa quoted Agrokor as saying.
“There is obviously doubt as to the financial status and business performance of the companies.” says Hanfa in its order which temporarily suspended the trading for ten trading day – until the end of the trading day on the 15th of May.
Some of Agrokor’s companies have already announced calls for shareholders’ assemblies. For example, Tisak and Vupik announced that at their assemblies, which will be held on the 15th of May, that they will make a decision to dismiss Baker Tily Croatia as the auditing company and appoint PricewaterhouseCoopers as auditors for 2016.
