Tech Group Solutions 30 Consider Removing From List Over Conflict With Accountants
PARIS (Reuters) – Technology services firm Solutions 30, whose business practices have been criticized by hedge fund Muddy Waters, said on Friday it could delist its shares and EY accountants had not closed his accounts.
Solutions 30, whose actions have been suspended since May 10 and is under pressure from the French financial regulator to publish its 2020 audited results, said it was considering appointing new auditors.
“The group’s annual report will be published after receipt of the final audit report from EY. As a result, the company is still unable to provide a specific timeline for the release of this report, ”Solutions 30 said in a statement.
Any possible problem at Solutions 30 could affect both institutional investment firms and many French private investors, who hold shares in the company.
The company, which is headquartered in Luxembourg and shares listed in Paris, said it plans to hire investment bankers to find long-term shareholders.
“The project, on which the company does not intend to comment beyond its legal obligations to do so, could go as far as delisting,” said Solutions 30, who added that its shares are expected to resume operations on May 24.
Solutions 30 chief executive Gianbeppi Fortis asked if the company could also consider a sale or merger with a rival, told reporters “all options are open.”
Although accountants have not approved its accounts, the company confirmed its 2020 financial results released on April 28, with revenue up 18%.
Officials at EY Luxembourg could not immediately be reached for comment, but the accounting firm told Reuters earlier in the week it could not comment on the situation due to client confidentiality.
Hedge fund Muddy Waters Research – which has a “ short ” position betting on Solutions 30 shares to fall – said the question about the accounts raised questions.
“It’s obvious to us that EY found serious problems in its audit of Solutions 30’s 2020 financial statements,” said Muddy Waters founder Carson Block.
Solutions 30, which has a market value of around 1.1 billion euros ($ 1.34 billion), said in January that it decided to file a libel claim following criticism by Muddy Waters about its business practices. .
Muddy Waters said he did not receive notice of a defamation suit against him by Solutions 30.
The Solutions 30 website states that the company has more than 11,000 service engineers who handle tasks such as cable installation and general technical support.
(1 USD = 0.8214 euros)
Report by Sudip Kar-Gupta and Matthieu Protard, edited by Louise Heavens, Emelia Sithole-Matarise and Susan Fenton